NZ sharemarket starts week down 0.6%

Global marketer a2 Milk hit a near nine-month low as the New Zealand sharemarket opened the week with a fall of more than 0.5%.

Monday, November 11th 2024, 6:37PM

by BusinessDesk

The S&P/NZX 50 Index was on a gradual slide all day and closed at 12,686.33, down 84 points or 0.66%.

Trading was steady, with 33.9 million share transactions worth $126.6m.

RBNZ

Jeremy Sullivan, investment adviser with Hamilton Hindin Greene, said the market was still digesting the US election result and whether NZ will get caught up in a trade war and be impacted by tariffs.

He said the Reserve Bank of NZ’s survey of future inflation marginally lifted swap rates, and the fall in inflation looks to settle.

In the August Survey of Expectations, two-year inflation increased from 2.03% to 2.12%, and one-year inflation was down to 2.05% from 2.4%.

The RBNZ is still expected to cut the official cash rate (OCR) when it meets at the end of the month.

In the United States, the major markets had their best week in a year following the presidential election. They gained between 4.6% and 5.7%.

The Dow Jones Industrial Average was up 0.59% to 43,988.99 points over the weekend NZ time, the S&P 500 gained 0.38% to 5,995.54, and the Nasdaq Composite was flat at 19,286.78.

It was all quiet overnight with the markets closed for the Veterans Day public holiday.

Local stocks

At home, a2 Milk fell 34c or 5.83% to $5.50 on light volumes. It was last at that level in February.

Sullivan said the Chinese economic stimulus was less than expected, and the weak consumer sentiment hasn’t helped a2 Milk – nor the fear of what tariffs will do.

Contact Energy declined 16c or 1.87% to $8.39; Freightways was down 21c or 2.01% to $10.25 on profit-taking; Infratil eased 30c or 2.4% to $12.18; Spark decreased 5c to $2.99; and Skellerup Holdings shed 9c or 1.86% to $4.76.

Other decliners were Air NZ shedding 1c or 1.85% to 53c; Scott Technology decreasing 9c or 4.25% to $2.03; Green Cross Health falling 6c or 7.32% to 76c; and Delegat Group shedding 10c or 1.96% to $5; and Dual-listed banking stocks ANZ decreased 40c to $34.80 and Westpac declined 69c or 1.94% to $34.95.

In the retail sector, Briscoe Group was down 10c or 1.97% to $4,98; KMD Brands declined 2.5c or 5.68% to 41.5c and the Warehouse was up 2c or 1.96% to $1.04.

Heartland Group was down 2c or 2% to 98c; Santana Minerals eased 3.5c or 4.76% to 70c; My Food Bag declined 1.5c or 6.82% to 20.5c; Pacific Edge fell 1.1c or 7.1% to 14.43c; and Promisia Healthcare decreased 1.5c or 3.41% to 42.5c.

NZME declined 3c or 2.8% to $1.04 after reducing its full-year operating earnings (ebitda) guidance to $53m-$55m, down from $57m-$61m, because of the slower-than-expected recovery of market conditions.

The publisher and broadcaster said advertising revenue was weaker than expected in September, and the third quarter was 1% lower than the same period last year. The fourth quarter, however, started positively, and NZME expects about 5% growth in advertising revenue for the year.

Fonterra Shareholders’ Fund increased 12c or 2.41% to $5.10. The dairy co-operative increased its forecast farmgate milk price and told the market it was going ahead with the sale of its global consumer business, Fonterra Oceania and Fonterra Sri Lanka.

The dairy co-operative said it had received meaningful buyer interest in the businesses, including its major brands Anchor, Mainland and Fernleaf, and processing plants in New Zealand, Australia and Sri Lanka. A sale option is establishing a separate company and completing an initial public offer.

Fonterra is prioritising its ingredients and foodservice businesses. Because of strong demand and increased prices for commodity products, the co-operative raised the midpoint of its 2024/25 forecast price to $9.50 per kilogram of milk solids from $9.

Fisher and Paykel Healthcare gained 11c to $37.74; Vulcan Steel rose 41c or 5.19% to $8.31; Manawa Energy was up 14c or 2.64% to $5.44; Vista Group improved 7c or 2.46% to $2.91; Ventia Services increased 20c or 3.89% to $5.34; and Comvita rebounded 6c or 5.36% to $1.18.

Cooks Coffee climbed 3c or 11.32% to 29.5c; Enprise Group rose 4c or 6.9% to 62c; South Port NZ gained 10c or 1.89% to $5.40; Sky TV collected 4c to $2.65; Blackpearl Group added 3c or 2.21% to $1.39; and Private Land and Property Fund increased 6c or 4.62% to $1.36.

TruScreen, up 0.001c or 5.26% to 2c, told the market a report published by the German research journal Springer Nature concluded that itsja cervical screening results were comparable and even better than liquid based cytology.

Tags: Market Close