NZ sharemarket drifts aimlessly as investors hibernate

The New Zealand sharemarket, without any positive leads from offshore, continued to drift aimlessly, though a late rebound rescued it.

Thursday, March 14th 2024, 6:50PM

by BusinessDesk

The S&P/NZX 50 Index was up and down all day and then rose in the last half-hour matching session to close at 11,808.33, down 0.68 points or 0.01%.

The index hit a mid-morning low of 11,757.91 points. There were 66 gainers and 68 decliners over the whole market on volumes of 25.55 million shares worth $109.06m.

Greg Main, Jarden Wealth Management adviser, said there was no real international buying in the local market, which is very quiet.

“We’ve had all our company results, and people have gone into hibernation.

“We’ve seen some small bounces in a few of the smaller stocks, such as the retailers following the Briscoe annual result. Maybe there’s a little bit of sector rotation in stocks that have been sold off.”

Main said investors are waiting to see where inflation is heading and whether there will be interest rate cuts sooner rather than later. Our economy is definitely slowing, and there’s a tough six months ahead.”

Instead, alternative investments continue to perform. Gold reached new highs of US$2,172 (NZ$3,526.26) an ounce, while silver has climbed 3.56% in the past week to US$805.55 per troy oz.

Around half of the demand for silver is generated by its industrial uses, and the transition to electric vehicles is also expected to demand nearly half of the annual silver supply by 2040.

On the local market

At home, house prices lifted 6.9% in February from January, but sales are still at subdued levels, with days to sell extended from 44 to 46 days.

ANZ Research said, “It’s a bit of a mixed bag and suggests the market is trending sideways.” Among retailers, Hallenstein Glasson was up 12c or 1.98% to $6.17, and The Warehouse gained 3c or 2.26% to $1.36. This followed Briscoe’s record sales of $792m for the year ending Jan 28. Briscoe was up 3c to $4.46788, but Michael Hill declined 2c or 2.74% to 71c.

There was profit-taking in the dual-listed bank, with Westpac falling 96c or 3.28% to $28.27 and ANZ down $1.75 or 5.5% to $30.05 after they reached record highs. Heartland Group increased 3c or 2.34% to $1.31.

Fisher and Paykel Healthcare was down 25c to $24.31; Chorus fell 19c or 2.35% to $7.88; Serko declined 6c to $3.80, having shed 29c this week; and Scott Technology shed 7c or 2.27% to $3.01.

Green Cross Health declined 5c or 4.55% to $1.05; Accordant Group decreased 2c or 2.5% to 78c; and Comvita shed 4c to $2.40.

Meridian Energy, up 2c to $5.70, reported that national hydro storage declined from 101% to 93% of historical average in the month to March 11, and February retail sales volumes increased 9.6% compared with the same time last year.

Residential sales were up 5.8%, small medium business by 9%, large business by 17.4%, agriculture by 27.6% and corporate increased by 1.7%.

Meridian completed the $300m six-year green bond offer carrying an interest rate of 5.4%. The bonds will be issued on March 21.

Mainfreight gained 74c to $68.49; a2 Milk was up 8c to $6.42; Contact Energy increased 15c or 1.82% to $8.38; Freightways recovered 16c or 1.93% to $8.45; and Port of Tauranga rebounded 14c or 2.69% to $5.34.

Vista Group increased 3c or 1.73% to $1.76; NZX rose 4.1c or 4.15% to $1.03; and Eroad gained 2c or 2.63% to 78c.

Cooks Coffee, down 1c or 4.26% to 22.5c, is making a placement to selected investors at 20c a share to raise $1.7m, as well as offering a share purchase plan to existing shareholders at 20c a share. Some of the money raised will be used to expand the Esquires business in the Middle East and Europe.

Me Today, unchanged at 9.5c, has launched a rights issue at 8c a share in which shareholders can take up nine new shares for every four already held. The Baker and Sinclair Investment Trusts are underwriting $2m of the $2.78m rights issue.

Cancer diagnostics company Pacific Edge was down 0.003c or 3.33% to 8.7c. Chair Chris Gallaher, who joined in 2016, and Mark Green are retiring as board directors.

Tags: Market Close