Market close: NZ stocks show resilience as Aussie shares fall sharply

Precinct Properties, whose portfolio includes the PwC Tower at Commercial Bay, was down 0.005c to $1.295 after telling the market that the value of its $3.2 billion portfolio, as valued at June 30, is expected to decline $250 million or 7.1 per cent.

The New Zealand sharemarket showed a great degree of resilience in the face of increased wholesale interest rates and a big fall in shares across the Tasman.

Apart from a lunchtime lull, the S&P/NZX 50 Index climbed strongly in the afternoon and closed at 11,980, up 20.79 points or 0.17 per cent after falling more than 1 per cent at one stage with an intraday low of 11,812.86.

The index put up a terrific performance for the week, gaining 0.52 per cent and is up 4.4 per cent so far this year.

There were 83 decliners and 45 gainers over the whole market, with 36.2 million shares worth $111.93 million changing hands.

Matt Goodson, managing director of Salt Funds Management, said the local market was surprisingly resilient in the context of weak leads from the United States and Australia, and the rising bond yields.

The S&P/ASX 200 Index had fallen 1.64 per cent to 7046.2 points at 5.45pm NZ time.

The New Zealand 10 Year Government Bond yield was up 12 basis points to 4.847 per cent and the Australian equivalent increased 13.8 points to 4.265 per cent. The US Treasury 2 Year yield has hit a 16-year high of 5 per cent.

“For our market to ignore those increases, that’s quite impressive,” said Goodson. “It feels like there are flows of money coming into the market.”

Investors in the US started worrying about a further rate rise from the Federal Reserve following better-than-expected jobs data. The Dow Jones Industrial Average was down 1.07 per cent to 33,922.26 points; the S&P 500 declined 0.79 to 4411.59; and the Nasdaq Composite shed 0.82 per cent to 13,679.04.

At home, Summerset Group went above the $10 mark for the first time in eight months after gaining 20c or 2.02 per cent to $10.10.

Transport and logistics companies Mainfreight rebounded $1.79 or 2.51 per cent to $72.98, and Freightways was up 15c or 1.78 per cent to $8.60.

Ebos Group gained 37c to $37.55; Port of Tauranga increased 9c to $6.29; and the energy stocks Meridian and Mercury were up 5c to $5.60 and 3c to $6.58 respectively.

Carbon Fund increased 6c or 4.58 per cent to $1.37. Carbon unit prices have collapsed in the past three weeks, down 40 per cent to $36.5 per tonne, due to a lack of confidence in the future of the Emissions Trading Scheme.

Other gainers were Colonial Motor Company up 17c or 1.88 per cent to $9.20; Seeka rising 14c or 5 per cent to $2.94; Steel & Tube collecting 2c or 1.8 per cent to $1.13; and hospitality group Savor up 2c or 6.45 per cent to 33c.

Chris Kinraid is moving from KMD Brands chief financial officer to chief executive of fellow listed retailer Hallenstein Glasson, replacing Stuart Duncan and starting by the end of the year. Hallenstein’s share price was down 10c to $5.95, and KMD declined 1c to $1.03.

Pacific Edge gained 1.5c or 7.5 per cent to 21.5c following its 100 per cent rise the day before. Medicare contractor Novitas is reviewing the funding for Pacific Edge’s Cxbladder tests in the United States.

Tourism Holdings fell 9c or 2.46 per cent to $3.57; a2 Milk shed 4c to $5.44; Delegat Group was down 20c or 2.22 per cent to $8.80; and AFT Pharmaceuticals declined 6c to $3.58.

Precinct Properties was down 0.005c to $1.295 after telling the market that the value of its $3.2 billion portfolio, as valued at June 30, is expected to decline $250m or 7.1 per cent. The decrease will reduce net tangible assets by 16c a share. Fellow property company Investore declined 2c to $1.42.

Sky TV declined 4c to $2.35 after announcing the extension of its content and platform agreement with Warner Bros Discovery.

Vista Group was down 7c or 3.85 per cent to $1.75; Serko declined 5c to $3.90; T&G Global shed 6c or 2.91 per cent to $2; and CDL Investments decreased 2c or 2.53 per cent to 77c.