NZ sharemarket slides 0.37%

The New Zealand sharemarket was in a lacklustre mood and posted a near half percent fall, with debt-laden Synlait Milk hitting a new all-time low.

Tuesday, March 12th 2024, 6:37PM

by BusinessDesk

The S&P/NZX 50 Index was on a gradual slide for most of the day and was again saved by a late rise in the matching session.

The index declined 44.49 points or 0.37% to 11,829.18 – its second successive fall this week. There were 55 gainers and 78 decliners over the whole market on volumes of 26.53 million share transactions worth $96.43m.

All eyes are on the United States February consumer price index (CPI) released overnight.

Paul Robertshawe, chief investment officer with Octagon Investment Funds, said it’s strange that people are buying perpetual investments on the sharemarket and they are worrying about a one-month CPI.

“It just shows how volatile the markets are.”

He said the local market is soft, and companies are out and about talking with investors and doing their normal roadshows post the reporting season.

In the United States, the Nasdaq Composite declined for the second day running as technology stocks came off the boil. The Nasdaq was down 0.41% to 16,019.27 points.

Information technology stock Super Micro Computer fell 5.24% to US$1,080.22 (NZ$1,749.56), and chipmaker Nvidia fell 2% to US$857.74 as investors question whether stocks tied to artificial intelligence have more room to run after big rallies. Facebook’s parent company, Meta, declined 4.42% to US$483.59.

At home, Synlait Milk fell 4c or 5.33% to 71c – its lowest level since listing in July 2013. Synlait pushed out its half-year reporting date a week to April 2, and the market is waiting to see how it will reduce its debt.

The dairy company has a $130m repayment due on March 28, and it has $180m worth of NZX-listed bonds to repay in December. Synlait is also attempting to sell its Dairyworks cheese factory.

Freightways gave up its gain and more from the day before, declining 42c or 4.79% to $8.34 after DHL Group reported some weakness in its courier business.

Falls across the board

Market leaders fell with Fisher and Paykel Healthcare down 15c to $24.40; Meridian Energy shed 13.5c or 2.29% to $5.75; Ebos Group decreased 20c to $37.35; Mainfreight declined 77c to $67.32; and Fletcher Building fell 8c or 1.87% to $4.19.

Skellerup Holdings declined 12c or 2.79% to $4.18; Turners Automotive was down 11c or 2.3% to $4.68; SkyCity gave up 4c or 2.08% to $1.88; Vulcan Steel shed 29c or 3.45% to $8.11; and The Warehouse decreased 4c or 2.99% to $1.30.

Serko fell 9c or 2.2% to $4; PGG Wrightson dropped 4c or 1.9% to $2.06; NZ Rural Land Co was down 2c or 2.13% to 92c; and Bremworth decreased 2c or 3.85% to 50c.

Smartpay Holdings headed the gainers list, rising 7c or 4.83% to $1.52. Auckland International Airport was up 10c to $8.26; Chorus gained 7.5c to $8.125; Contact Energy added 6c to $8.26; and Tourism Holdings added 5c to $3.41.

Michael Hill was up 2c or 2.82% to 73c; Investore increased 2c or 1.85% to $1.10; Green Cross Health improved 2c or 1.85% to $1.10; Napier Port gained 4c to $2.44; AFT Pharmaceuticals collected 5c to $3.18; and Scales Corp added 5c to $3.10.

Air NZ, down 0.005c to 59c, will pause its Auckland – Chicago non-stop service from April to November because of the availability of serviceable Rolls-Royce Trent 1000 engines, which is impacting airlines around the world.

The pause of two or three services a week is not expected to impact Air NZ’s full-year guidance.

Kiwi Property, unchanged at 85c, presented on its 295 Resido build-to-rent apartments next to the Auckland Sylvia Park shopping centre, due to open in early May.

Tags: Market Close