by BusinessDesk
The S&P/NZX 50 Index fell 95.07 points, or 0.8 percent, to 12,085.18. Within the index, 25 stocks fell, 18 rose and seven were unchanged. Turnover was $145 million.
The index has now been in decline for six consecutive weeks.
Ventilator humidifier manufacturer, F&P Healthcare closed down 4.2% at $27.34 after oscillating in a wide range – trading as high as $29.85 – throughout the day, despite there being no significant news.
Matthew Goodson, a director at Salt Funds, said rising interest rates were still driving some stocks lower as signs of inflation began to appear.
The Reserve Bank increased its bond-buying to $630m, after buying a reduced volume throughout February, but it had little impact on bond yields which remained near 18-month highs.
Meridian Energy fell 3% to $5.15, weighed down by the higher interest rates but also by further changes to the S&P’s clean energy index rules which may see the stock sold heavily if they are implemented.
Contact Energy would also be affected by the changes and declined half a percent to $6.68. Analysts at Forsyth Barr today gave the stock an outperform rating, saying the stock posed better value than Meridian.
A2 Milk Company fell 2.1% to $9.92, while Synlait Milk saw a 4% bounce back to $3.61 after dropping almost 14% last week.
My Food Bag followed up its poor debut on Friday with another slide, dropping 2.3% to $1.70 today.
“Between the stock’s pricing and listing, markets have been a bit weak; growth stocks in particular,” Goodson said. “You could only describe the performance as disappointing.”
Despite the market seeing the IPO as overpriced, Goodson said the company could surprise naysayers by leveraging its considerable brand awareness into further growth.
The stock is also on the fringes of being included in the NZX 50 Index, which could encourage buying if it were to be added in a future rebalancing.
Mercury NZ rose 3.3% to $6.20 after sharing plans to offer $250m dollars’ worth of green bonds to the market to finance projects.
Oceania Healthcare declined by 1.4% to $1.43. Its chief executive is jumping ship to take up the same role at Metlifecare.
The kiwi dollar was trading 71.57 US cents at 5pm in Wellington, down from 71.27 cents on Friday.
The trade-weighted index was at 74.81 at 5pm, from 74.69 on Friday. The kiwi traded at 93.03 Australian cents from 92.99 cents, 77.61 yen from 77.46 yen, 60.12 euro cents from 59.96 cents, 51.82 British pence from 51.59 pence, and 4.6560 Chinese yuan from 4.6389 yuan.
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