Market close: Market ends first week back on quiet note

New Zealand sharemarket ended its first week of the new year on a weak note. Photo / NZME

The New Zealand sharemarket ended its first week of the new year on a weak note following a fall on Wall Street as the United States labour market remains stubbornly strong.

After a steady morning, the S&P/NZX 50 Index fell from lunchtime and closed at 11,625.97, down 25.32 points or 0.22 per cent after reaching an intraday high of 11,682.75.

There were 65 gainers and 62 decliners over the whole market on light volume of 19.27 million share transactions worth $66.04m.

Shane Solly, portfolio manager with Harbour Asset Management, said it was a weak end to an okay week, and some of the stocks that popped over the last two days gave back their gains.

He said the latest job statistics suggested the US economy is stronger than expected, and added to confusing macro-economic messages.

“There are a number of companies talking about lay-offs, and a trade-off over whether the central banks have done enough or need to do more to tame inflation.

“The central bankers are talking about keeping the heat on (in raising interest rates) but data points are showing that inflation is rolling off,” Solly said.

The United States ADP private payrolls report showed employers added 235,000 jobs in December, well above expectation, and wages increased more than anticipated. Then weekly jobless claims were below expectations and showed a drop in continuing claims.

Investors were looking out for the latest non-farm payrolls data overnight as a further sign of where inflation has landed.

The Dow Jones Industrial Average was down 1.02 per cent to 32,930.08; S&P 500 declined 1.16 per cent to 3808.10; and Nasdaq Composite fell 1.47 per cent to 10,305.24.

Across the Tasman, the S&P/ASX 200 Index was up 0.72 per cent to 7114.6 points at 5.45pm NZ time.

At home, Fisher and Paykel Healthcare’s run stalled, falling 39c to $23.11. Ebos Group decreased 34c to $45.35; Chorus was down 7.5c to $8.21; Mainfreight declined $1.04 to $65.96; a2 Milkgave up 8c to $7.44; Skellerup Holdings shed 10c or 1.89 per cent to $5.20; and The Warehouse Group was down 7c or 2.57 per cent to $2.65.

Solly said research from an Australian broker showed some wariness towards a2 Milk, suggesting its firm online sales in China may be at the expense of physical store sales.

Ryman Healthcare continued its run, gaining 14c or 2.55 per cent to $5.64.

Energy stocks Contact gained 3c to $7.75, and Mercury increased 9c to $5.675.

Vital Healthcare Property Trust was up 6.5c or 2.88 per cent to $2.32 after its manager told the market it expects a portfolio revaluation loss of $65m for the six months ending December, representing a 1.9 per cent decline since the end of June last year.

To enhance its portfolio, Vital Healthcare is selling $200m worth of non-core assets; delaying its development pipeline including the A$98.6m (NZ$106.98m) Tasman Medical Centre, and building a new A$140m (NZ$152m) six green star life sciences centre of excellence on the Gold Coast.

Solly said there is a wait and see approach over whether Vital Healthcare’s external manager can add value for unit holders. “There are more revaluations to come with other property stocks.”

Other decliners were Scott Technology down 5c or 1.96 per cent to $2.50; similarly Gentrack decreasing 5c or 1.96 per cent to $2.50; Ventia Services shedding 7c or 2.58 per cent to $2.64; and Pacific Edge slipping 2c or 3.85 per cent to 50c.

NZME declined 2c or 1.74 per cent to $1.13; Vista Group shed 3c or 1.92 per cent to $1.53; TradeWindow decreased 2c or 3.85 per cent to 50c; and Radius Residential Care down 1.5c or 5.08 per cent to 28c.

SkyCity Entertainment was up 5c or 2.05 per cent to $2.49; Stride Property increased 3c or 2.14 per cent to $1.43; Winton Land added 5c or 3.13 per cent to $1.65; PGG Wrightson gained 9c or 2.02 per cent to $4.54; and Ampol collected 51c or 1.7 per cent to $30.52.

South Port NZ increased 27c or 3.55 per cent to $7.87; Millennium & Copthorne Hotels NZ rose 13c or 7.22 per cent to $1.93; and Booster Innovation Fund rose 7.4c or 5.09 per cent to $1.381.