Market close: Sharemarket falls to worst performance global financial crisis

The New Zealand sharemarket has fallen 2.83 per cent this year - its worst performance since the grim global financial crisis days in 2008. Photo / NZME

Developer Winton Land made a subdued debut on the New Zealand sharemarket that had a late fall ahead of the quarterly rebalancing of two indices – the local top 50 and FTSE Russell.

The S&P/NZX 50 Index was cruising along nicely until it fell off its intraday high of 12,799.67 in late afternoon and closed at 12,717.94 down 59.6 points or 0.47 per cent.

With four successive falls, the index shed 1.03 per cent for the week and has now fallen 2.83 per cent this year – its worst performance since the grim global financial crisis days in 2008.

There were 63 gainers and 72 decliners across the whole market, and trading surged in the last 45 minute matching session to 82.6 million share transactions worth $345.23 million.

Winton Land became the 188th stock on the NZX and was down 1.7c to $3.87, with 292,826 shares worth $1.13m being traded. Winton raised $350m from its initial public offer of 90m shares at an issue price of $3.887, and it has a market capitalisation of nearly $1.15 billion.

Matt Goodson, managing director of Salt Funds Management, said Winton was listing at a significant premium to asset value and its float (of 90m shares) was relatively small compared with the size of the company. "It will trade sparingly unless existing shareholders decide to sell down."

Napier Port, up 3c to $3.04, has fallen out of the NZX 50 at the expense of EROAD which rose 42c or 8.24 per cent to $5.52 on trade worth $14.36m.

Retirement village operator Arvida, unchanged at $1.95; Precinct Properties, down 3c or 1.84 per cent to $1.60; Vital Healthcare Property Trust, declining 2c to $3.16; and Pacific Edge, down 8c or 5.8 per cent to $1.30 were also re-weighted by the passive investment funds following their recent capital raisings.

Utilities investor Infratil, up 3c to $7.90 has invested further in the diagnostic imaging business, taking a near 51 per cent shareholding in Bay Radiology for $32.5m. Bay Radiology, the largest private provider in the Bay of Plenty, will join Pacific Radiology and Auckland Radiology in a newly-formed group with 70 clinics and 141 radiologists.

Chorus rebounded 25c or 3.61 per cent to $7.18 after a sharp drop the day before when it received the final regulatory framework for fibre from the Commerce Commission.

Goodson said there was no surprise with the regulatory framework, but it will be interesting to see whether Chorus' charges can be competitive in the long term. "We will see how technology evolves in the years ahead – but Chorus does have a very good dividend."

Cyclical stocks Fletcher Building was up 5c to $7.25, and Vulcan Steel gained 8c to $9.55. Meridian Energy rose 18c or 3.86 per cent to $4.845; and Mainfreight was up 74c to $90.88.

My Food Bag had a pick-me-up, gaining 5c or 4.55 per cent to $1.15.

Market leader Fisher and Paykel Healthcare was down 50c to $31.27 on trade worth $42.67m; Pushpay Holdings fell a further 6c or 4.58 per cent to a new low of $1.25; Ebos Group declined 88c or 2.3 per cent to $37.42; and Sky Network Television lost 8c or 2.93 per cent to $2.65; and Vista Group was down 8c or 3.65 per cent to $2.17.

Apple exporter Scales Corporation fell 16c or 2.8 per cent to $5.56; Goodman Property Trust declined 5c or 1.9 per cent to $2.58; Restaurant Brands shed 67c or 4.38 per cent to $14.63; Freightways was down 14c to $12.66; and retirement village operator Summerset Group Holdings decreased 37c or 2.77 per cent to $13.01.

Online travel provider Serko has completed its $8.3m retail offer to existing shareholders at $6.85 a share and it was down 18c or 2.63 per cent to $6.66. Serko had earlier made an institutional placement for $75m.

NZME told the market it will begin its $30m on-market share buy-back in late February and the programme will end by mid-December next year The buy-back represents 11 per cent of NZME's issued share capital, and its share price was unchanged at $1.45.

Rua Bioscience rose 5.5c or 14.29 per cent to 44c after announcing it will distribute its first medicinal cannabis during the first half of next year following verification that the product meets Medsafe's quality standards. The product will be available as prescription-only medicine through GPs and specialists.