NZ stocks fall as investors await US inflation figure, interest rate decision - Market close

Synlait Milk fell to under $1 for the first time in 20 years after declining 8c or 7.62 per cent to 97c. Photo / NZME

The New Zealand sharemarket shed more than half a per cent as it waited for the latest United States inflation rate and Federal Reserve’s stance on interest rates.

The S&P/NZX 50 Index was on a gradual slide all day and closed at 11,382.58, down 66.89 points or 0.58 per cent. The index has fallen 1 per cent in the last two trading days and is now 0.8 per cent behind for the year to date.

There were 50 gainers and 79 decliners over the whole market on volumes of 42.37 million share transactions worth $100.11 million.

Mark Lister, investment director with Craigs Investment Partners, said it’s understandable the local market has taken a breather after a six-week winning streak, the longest in a year.

He said the next two days are crucial if the rally is to continue. The US November consumer price index will be followed by the Federal Reserve’s monetary policy statement.

“We will see if the markets get what they want. The markets will be watching to see whether the Fed talks tough like our Reserve Bank and pours cold water on their hope for interest rate cuts,” Lister said.

The US markets remain positive. The Dow Jones Industrial Index was up 0.43 per cent to 36,404.93 points; S&P 500 increased 0.39 per cent to 4622.44; and Nasdaq Composite gained 0.2 per cent to 14,432.49.

Across the Tasman, the S&P/ASX 200 Index was up 0.51 per cent to 7235.8 points at 6pm NZ time.

US inflation is expected to fall to 3.4 per cent, down 0.2 per cent from the year ending October and its lowest level since April 2021. The Federal Reserve is also expected to keep its cash rate on hold and the markets are still predicting interest rate cuts next year.

At home, Ebos Group fell $2.15 or 5.73 per cent to $35.35; Fletcher Building was down 8c to $4.57; Freightways shed 10c to $8.27, Skellerup Holdings declined 17c or 3.39 per cent to $4.84; Vulcan Steel decreased 26c or 3.25 per cent to $7.74; and T&G Global was down 14c or 6.86 per cent to $1.90.

In the energy sector Mercury decreased 12.5c or 2 per cent to $6.135; Contact was down 12c to $7.72; and Vector shed 7c or 1.84 per cent to $3.73.

Port of Tauranga declined 14c or 2.57 per cent to $5.30 following the report that Bay of Plenty Regional Council is reviewing its majority shareholding.

Synlait Milk fell to under $1 for the first time in 20 years after declining 8c or 7.62 per cent to 97c. Synlait and Pacific Edge, down 0.002c or 2.3 per cent to 8.5c, are the two worst-performing stocks in the NZX top 50 over the past 12 months, having fallen 77 per cent and 83 per cent respectively.

Online travel provider Serko, up 9c or 2.14 per cent to $4.29, is the best performer, having risen 69.35 per cent.

Other gainers were Auckland International Airport adding 7c to $8.30; Sky TV up 6c or 2.21 per cent to $2.78; and Bremworth increasing 4c or 7.14 per cent to 60c.

Hallenstein Glasson was down 18c or 3.23 per cent to $5.40 after telling shareholders at the annual meeting that group sales declined 4.7 per cent for the first 19 weeks of the new financial year compared with the same period last year. However, gross margin has increased despite the continued strength of the US dollar.

In the property sector, Investore fell 5c or 4.55 per cent to $1.05 and Precinct was down 3c or 2.5 per cent to $1.17.

SkyCity Entertainment, down 3c to $1.75, has settled its dispute with MPF Parking NZ, paying compensation of $204m for the return of the Auckland carpark.

Takeover target Rakon declined 6c or 5 per cent to $1.14 on 321 trades worth $2.148m.

Other decliners were Comvita falling 13c or 5.53 per cent to $2.22; Delegat Group decreasing 11c to $6.58; NZME shedding 3c or 3.33 per cent to 87c; PGG Wrightson down 11c or 3.19 per cent to $3.34; and 2 Cheap Cars giving up 3c or 3.41 per cent to 85c.