NZ sharemarket ends day lower after late fall - Market close

Mainfreight declined 93c to $68.17. Photo / Alex Cairns

The New Zealand sharemarket had a late fall with Fisher and Paykel Healthcare doing its best to bolster trading. But all eyes were on the US Federal Reserve’s latest meeting.

The S&P/NZX 50 Index closed at 11,741.88, down 43.59 points or 0.37 per cent following the deep dive in the end-of-day broker matching session. The index reached an intraday high of 11,811.11 points.

There were 50 gainers and 86 decliners over the whole market on 37.83 million share transactions worth $118.24 million.

Jeremy Sullivan, investment adviser with Hamilton Hindin Greene, said the market was in a holding pattern awaiting the statement from the Federal Reserve (due Thursday morning) NZ time.

“Keeping the official rate unchanged will be no surprise, and the market is pricing in two rate cuts by the end of the year. Any divergence from that will materially move the markets,” Sullivan said.

“Inflation has been stickier than the Fed hoped, and economic data has been mixed. If the Fed does give guidance to the timing of rate cuts, then this frees up the Reserve Bank here to follow suit.”

At home, latest statistics showed New Zealand gained 98,500 migrants in the year to April, down from 106,000 in the March year – though net migration remained at historically high levels.

More than 81,000 New Zealanders departed long-term in the year to April for a net loss of 56,500, exceeding the previous record of 52,000 in the year to March. There was a gain of 154,900 non-New Zealand citizens.

Market leader Fisher and Paykel Healthcare made up more than eight points of the index move after increasing 46c to $29.86.

Auckland International Airport was up 9c to $7.58, but there was profit-taking in a2 Milk which fell 34c or 4.43 per cent to $7.33 after rising 60 per cent this year. Summerset Group was down 18c or 1.86 per cent to $9.52, and Mainfreight declined 93c to $68.17.

Amongst the retailers, Briscoe was up 10c or 2.44 per cent to $4.20, and Hallenstein Glasson gained 11c or 2.12 per cent to $5.31.

Vulcan Steel increased 16c or 2.16 per cent to $7.58; Scales Corp gained 6c to $3.56; Air New Zealand added 1c or 1.89 per cent to 54c; NZ King Salmon Investments increased 1.5c or 6.12 per cent to 26c; Smartpay rose 6c or 4.48 per cent to $1.40; and Accordant Group was up 1.5c or 3.75 per cent to 41.5c.

Tourism Holdings recovered 6c or 3.37 per cent to $1.84; Millennium and Copthorne Hotels NZ increased 9c or 4.97 per cent to $1.90; CDL Investments was up 2c or 2.74 per cent to 75c; and Carbon Fund gained 3c or 2.04 per cent to $1.50.

South Port NZ was down 14c or 2.49 per cent to $5.49; Arvida Group declined 3c or 3.19 per cent to 91c; KMD Brands decreased 1.5c or 3.49 per cent to 41.5c; and Heartland Group shed 2c or 2 per cent to 98c.

SkyCity Entertainment, down 2c to $1.54, told the market that the Consumer and Business Services’ independent review into the Adelaide casino has resumed, with findings due by the end of the year.

The review into SkyCity Adelaide’s suitability to hold the casino licence was put on hold while the civil penalty proceedings brought by Austrac were resolved.

Other decliners were Green Cross Health down 2c or 2.17 per cent to 90c; NZX shedding 3c or 2.78 per cent to $1.05; Kiwi Property decreasing 2.5c or 2.98 per cent to 81.5c; Foley Wines falling 3c or 3.61 per cent to 80c; Bremworth giving up 2.5c or 6.49 per cent to 36c; and Asset Plus down 1c or 4.35 per cent to 22c.

Seeka, unchanged at $2.50, told the market it has completed the Australian harvest with 4.5 million kg of fruit including kiwifruit, Nashi pears, European pears, jujubes and plums. Kiwifruit volumes increased 161 per cent to 2.2 million kgs.

New Zealand Oil & Gas, up 0.005c to 39c, has now added a further 25 per cent interest in the Australian Amadeus Basin Mereenie oil licences, taking its holding to 50 per cent, including subsidiary Cue Resources 7.5 per cent interest.

NZOG said the acquisition will double its reserves and production from the Mereenie field in the Northern Territory.

Good Spirits Hospitality, unchanged at 2.2c, is paying a special interim dividend of 0.97c a share, worth $561,200, and is delisting from the NZX on June 27.

NZOG is delisting on June 26 and concentrating on its primary listing on the Australian ASX exchange. Just Life Group is transferring to the Unlisted Securities Exchange.

It all means there will be 179 stocks listed on the NZX main board.