Market close: NZ sharemarket runs out of steam

Spark fell 2c to $5.43 as it prepares to join the ASX 200 Index at the end of the week. Photo / NZME

An uncertain New Zealand sharemarket ran out of steam in the afternoon with some weakness in the property sector and unusual volatility in other stocks.

The S&P/NZX 50 Index traded steadily till lunchtime and began its decline, closing down 51.06 points or 0.43 per cent to 11,762.15. The index reached an intraday high of 11,829.51 points.

There were 71 gainers and 65 decliners on the main board and volume was again light with 28.15 million share transactions worth $116.8 million.

Matt Goodson, managing director of Salt Funds Management, said there was some single stock volatility for no obvious reason – and property shares also came off.

He said all eyes would be on the United States markets overnight following the release of the August consumer price index and the latest annual inflation rate – expected to fall to 8 per cent from 8.5 per cent in July.

"There is an increasing acceptance that inflation has peaked or is close to it. The question now is whether inflation will return to an acceptable level without further monetary tightening," Goodson said.

The major US indices had a strong day in anticipation of a cooling in consumer prices. A survey by the Reserve Bank of New York revealed consumers have moderated their expectations of inflation over the next 12 months to 5.7 per cent, down from 6.2 per cent in July, and over three years inflation will fall to 2.8 per cent, from 3.2 per cent.

The Dow Jones Industrial Average was up 0.71 per cent to 32,381.34 points; S&P 500 increased 1.06 per cent to 4110.41; and Nasdaq Composite rose 1.27 per cent to 12,266.41.

Across the Tasman, the S&P/ASX 200 Index had increased 0.71 per cent to 7013.7 points at 6pm NZ time.

At home, food prices rose 8.3 per cent compared with August last year - the biggest annual increase in 13 years.

My Food Bag rose 3c or 5 per cent to 63c; Tower increased 4c or 6.35 per cent to 67c; and Eroad gained 8c or 5.23 per cent to $1.61 – all on low volume. They rose on 49 trades worth $52,161, 46 trades amounting to $136,492, and 38 trades worth $16,490 respectively.

Ebos Group faced selling in the afternoon on trade worth $3.35m, falling 77c or 1.92 per cent to $39.38. Restaurant Brands was up 48c or 5.85 per cent to $8.68 on trade worth $193,162.

In the property sector, Argosy was down 2.3c or 1.74 per cent to $1.30; Stride declined 3c to $1.78; and Investore decreased 2c to $1.61.

Utilities investor Infratil, up 1c to $9.30, continued to lead the individual trading list with 2.15m of its shares worth $20m changing hands. Investors have been positioning themselves in preparation for Infratil's increased weighting on the FTSE Russell Index, to be known on Friday.

Spark, down 2c to $5.43, is joining the ASX 200 Index at the end of the week.

Freightways gained 17c to $10.92; Fletcher Building added 5c to $5.63; Fonterra Shareholders' Fund increased 14c or 4.23 per cent to $3.45; Tourism Holdings was up 11c or 4.2 per cent to $2.73; and Ventia Services improved 4c to $3.34.

Synlait increased 3c to $3.55, while a2 Milk was down 9c to $6.31. Wine exporter Delegat Group tumbled 20c or 1.75 per cent to $11.20, and seafood exporter Sanford declined 9c or 2.05 per cent to $4.31.

Port of Tauranga fell 15c or 2.22 per cent to $6.60; Napier Port declined 7c or 2.37 per cent to $2.88; Chorus shed 6c to $7.70; Ryman Healthcare decreased 25c or 2.7 per cent to $9; and Vulcan Steel fell 26c or 2.91 per cent to $8.67.

Mercury, unchanged at $6.16, told the market it is building the 43MW Kaiwera Downs wind farm near Gore for a cost of $115m. The stage one capacity will power 20,000 homes or 66,000 electric vehicles. The latest project lifts Mercury's spend on renewable wind energy to nearly $600m since 2019.

Other energy companies Contact was down 4c; Vector declined 7c to $4.32; and Genesis declined 4c to $2.96.

Wellington Drive Technologies is changing its name to AoFrio on September 20 as it rebrands to an Internet of Things provider and supplier of energy-efficient motors to the food and beverage industry. Wellington Drive was unchanged at 14.3c.