On the essentials side, The Warehouse’s red sheds reported a 9.6 per cent increase in sales to a record $1.9 billion while the discretionary side, Noel Leeming and Torpedo 7, saw their sales fall by 3.3 per cent and 5.4 per cent respectively.
“The red stores were essentially quite resilient whereas Noel Leeming was not doing so well,” Smith said.
“Consumer surveys are showing that now is not a good time to buy a major household item and so obviously that’s a lot of what Noel Leeming sells.”
Added to the bearish mix were softer overseas sharemarkets and rising bond yields.
Smith said the market was commonly weaker in September while October, with some notable exceptions, was often stronger.
Key US 10-year Treasuries traded at 4.625 per cent, their highest point since 2007, while New Zealand 10-year bonds were at 5.241 per cent - at their highest point since 2011.
Interest rate-sensitive Ryman Healthcare fell 23 cents or 3.5 per cent to $6.25.
Meanwhile, business surveys continued their lacklustre run.
Both confidence and expectations for inflation continue to move in the right direction, but only just, according to the ANZ Business Outlook Survey for September.
The survey showed another small improvement in sentiment.
Shares in Synlait Milk rebounded by 8c or 6 per cent to $1.38 - still below its net tangible asset backing.
The stock is now back to where it was before key client a2 Milk announced it wanted to end the exclusivity deal it has with Synlait.
“There is no doubt that the end of an exclusivity arrangement would be a blow but nothing is certain as yet,” Smith said.
“The sale of [Synlait’s] Dairyworks will alleviate some of the pressure on Synlait’s balance sheet.
“There had been thought around a capital raise but if they get Dairyworks, it might reduce the need for that,” he said.
Among the few stocks to gain, 2 Cheap Cars rallied by 14c or 22 per cent to 76c after announcing an upbeat earnings guidance.
In materials released for the annual meeting, 2 Cheap Cars said its earnings guidance for the year is now $5.2m-$5.7m.
Based on a midpoint of $5.45m, this would result in a gross interim dividend of five cents per share payable in December and a final dividend at a similar level payable in June 2024, it said.
Tower Insurance firmed half a cent to 62c after the company announced the successful reinsurance placement for the 2024 financial year following global weather events at what it said were competitive rates.
Among the other movements, freight specialist Frightways dropped 41c or 4.7 per cent to $8.33 while medicinal cannabis company Cannasouth firmed 1.5c to 21c.
Jamie Gray is an Auckland-based journalist, covering the financial markets and the primary sector. He joined the Herald in 2011.
