NZ sharemarket falls to nine-week low - Market close

Rakon bucked the trend, rising 2c or 2.13 per cent to 96c. Photo / Dean Purcell

An uncertain New Zealand sharemarket fell to its lowest level in nearly nine weeks, with many of the leading stocks being hit.

The S&P/NZX 50 Index continued to slide all day until a late rise in the broker matching session, and closed at 11,746.59, down 36.3 points or 0.31 per cent – its fifth fall in seven trading days. The index sat at 11,744.39 on March 1.

There were 81 decliners and 52 gainers over the whole market on volumes of 25.56 million share transactions worth $88.48 million.

David McConnochie, investment adviser with Forsyth Barr, said it was another weak day. “There’s a lack of confidence in the New Zealand economy and I think some international funds have been moving out of the country. We have seen some yield plays today.”

He said the market was waiting to see further direction from the Reserve Bank monetary policy statement (on May 22).

Investors will also be closely following the reporting season which begins on May 20 with Manawa Energy (full-year) and Gentrack (half-year).

Over the 22 companies reporting – dominated by property and retirement village stocks - Forsyth Barr has forecast average revenue growth of 3 per cent and operating earnings (ebit) growth of 2 per cent.

Earnings per share forecasts are expected to fall 6 per cent and dividend per share growth being flat.

McConnochie said the revenue and ebit growth forecasts were “not bad at all” considering the slowdown in the economy. “If top-line revenue is growing, then that’s a good sign.

“Some of the companies will be cycling higher earnings from a year ago and a lot of this has been priced into the market. That’s why we have seen weakness.”

In the United States, the Dow Jones Industrial Average increased for the sixth successive day, up 0.44 per cent to 38,056.39 points – the longest stretch of positive days this year.

Across the Tasman, the S&P/ASX 200 Index had fallen 1.09 per cent to 7719.7 points at 6pm NZ time.

At home, Fisher and Paykel Healthcare was down 45c to $28.70; Ebos Group declined 84c or 2.39 per cent to $34.35; Infratil eased 20c to $10.62; Fletcher Building decreased 9c or 2.53 per cent to $3.47; Skellerup fell 12c or 2.99 per cent to $3.90; and SkyCity was down 5c or 2.89 per cent to $1.68.

In the retirement sector, Ryman Health declined 8c or 2.08 per cent to $3.77, and Summerset Group was down 14c to $10.56.

Interest rate-sensitive stocks Mercury Energy increased 19c or 3.01 per cent to $6.50; Meridian was up 15.5c or 2.59 per cent to $6.15; Vector gained 8c or 2.22 per cent to $3.69; Stride Property rose 5c or 4.13 per cent to $1.26; and Spark added 2c to $4.33.

Meridian told the market the 176MW Harapaki wind farm near Napier will be fully operational by the end of July. The project is expected to be completed inside the $448m capital budget.

Vulcan Steel hit its lowest price since listing in November 2021 after falling 45c or 6.04 per cent to $7.

Serko fell 13c or 3.9 per cent to $3.20; Vista Group was down 6c or 3.28 per cent to $1.77; Gentrack decreased 15c or 1.79 per cent to $8.25; Genesis Energy declined 5c or 2.2 per cent to $2.225; Comvita shed 4c or 2.23 per cent to $1.75; and Restaurant Brands eased 11c or 3.34 per cent to $3.18.

In the retail sector, Michael Hill fell 3c or 4.29 per cent to 67c; Hallenstein Glasson was down 10c or 1.77 per cent to $5.55; and Briscoe Group decreased 6c to $4.41.

PGG Wrightson was down a further 7c or 3.95 per cent to $1.70; Seeka declined 14c or 5.2 per cent to $2.55; and Air New Zealand shed 1c or 1.82 per cent to 54c.

Other decliners were Foley Wines shedding 2c or 2.5 per cent to 78c; Bremworth falling 2.5c or 5.75 per cent to 41c; Green Cross Health giving up 2c 1.96 per cent to $1; NZ Rural Land down 3c or 3.16 per cent to 92c; and CDL Investments decreasing 2c or 2.74 per cent to 71c.

Other gainers were a2 Milk adding 4c to $6.81; Rakon up 2c or 2.13 per cent to 96c, and Geneva Finance increasing 1.5c or 5.88 per cent to 27c.

Scales Corp, down 5c to $3.05, has declared a final dividend of 4.25c a share for the 2023 financial year, payable on July 12. The total dividend for the year was 8.5c a share representing 63 per cent of its net profit.