The S&P/ASX 200 Index was down 1.6 per cent to 6995.3 points at 6pm NZ time, falling 5.02 per cent in the last five trading days and virtually wiping out the gains achieved this year.
David McConnochie, investment adviser with Forsyth Barr, said Australia had a big down day driven by the financial sector and there was a rout in the mid-tier banks in the US overnight, with some down as much as 60 per cent.
“The rest of the markets are holding up well and looking to consolidate and recover from the noise around the SVB collapse. There have been reassurances that the Australian banks are fine with excellent tier one capital ratios – different to what happened in the US.”
On the Australian market, the financial sector had dropped 2.7 per cent, taking its five-day loss to 6.8 per cent. ANZ declined 70c or 2.76 per cent to $24.65 on the New Zealand market, and Westpac was down 35c to $22.80.
Back in Australia, insurers QBE fell 3.8 per cent to A$14.11 ($15.11) and IAG decreased 2.8 per cent to A$4.63, while at home Tower was down 2.5c or 4.03 per cent to 59.5c.
McConnochie said the 12 per cent rise in food prices for the year ending February fuelled further concerns around higher interest rates to combat inflation.
Anxious investors overnight were looking out for the US February consumer price index with expectation for a 0.4 per cent rise, down from 0.5 per cent in January.
In developments for the labour market, New Zealand’s annual net migration gain has returned to normal levels, hitting 33,200 for the year ending January. The loss of 16,400 New Zealanders was offset by the gain of 49,500 non-New Zealand citizens.
Tourists are increasing as well, with 514,100 arrivals and 497,000 departures in January. It was the first time that border crossings reached one million since the Covid-19 restrictions began in March 2020.
Australia, United States and Britain were the main sources of visitor arrivals with just 4900 arriving from China, compared with 50,300 in January 2020.
On the local market, Fisher and Paykel Healthcare declined 34c to $24.91; Fletcher Building was down 6c to $4.46; Ebos Group decreased 23c to $45.16; Mainfreight shed 50c to $69.40; and Port of Tauranga was down 7c to $6.16.
In the retirement village sector, Ryman Healthcare slipped a further 20c or 3.81 per cent to $5.05; Summerset Group was down 10c to $8.60; and Arvida Group declined 2c or 1.9 per cent to $1.03.
Comvita was down 8c or 2.39 per cent to $3.27; Vulcan Steel declined 18c or 2.07 per cent to $8.50; ikeGPS decreased 4c or 4.33 per cent to 88c; Seeka shed 10c or 3.23 per cent to $3; and Restaurant Brands was down 17c or 2.72 per cent to $6.07.
Marlin Global Fund, caught up in the Signature Bank collapse, lost 3c or 3.41 per cent to 85c. Rakon shed 2c or 2.25 per cent to 87c; and Savor fell 3c or 7.14 per cent to 39c.
Pushpay Holdings, up 2c to $1.26, extended the termination date for the scheme implementation agreement to Wednesday and allow Sixth Street and BGH Capital to progress the terms of a potential alternative takeover proposal.
Synlait Milk, down 10c or 3.1 per cent to $3.13, has reduced its forecast milk price to $8.50 per kgMS, from $9, because of subdued global economic activity and a slower-than-expected recovery in Chinese demand. This resulted in lower prices for Synlait’s commodity products.
Global marketer a2 Milk, which has a 17.4 per cent shareholding in Synlait, declined 13c or 1.84 per cent to $6.95.
One of the few main gainers were Serko increasing 11c or 4.74 per cent to $2.43, and MHM Automation up 2c or 2.22 per cent to 92c.
In Australia, Neuren Pharmaceuticals – originating in New Zealand – rose 10 per cent to A$10 after receiving US Food Drug and Administration approval of its Daybue for the treatment of Rett Syndrome in adults and paediatric patients 2 years and over. The drug, the first and only approved treatment for the syndrome, will be available by the end of next month.
