'Directionless' NZ sharemarket droops as ASX reaches new record

The New Zealand sharemarket lacked any real direction on a quiet day’s trading – unable to cling to any economic and company developments.

Tuesday, December 3rd 2024, 6:31PM

by BusinessDesk

The S&P/NZX 50 Index traded in a range of 13,123.8 and 13,037.89 before closing at 13,093.18, down 21.5 points or 0.16%.

Volumes were slightly lighter, with 38.37 million shares worth $139.6m changing hands.

Across the Tasman, the S&P/ASX 200 Index hit a new all-time high after rising 0.66% to 8504 points at 6pm NZ time.

Mark Lister, investment director with Craigs Investment Partners, said the local market has had a good bounce over the year's second half and rose 3.4% in November.

“With the excitement of the latest official cash rate decision and local reporting season now behind us, it’s not surprising that the market is taking a breather.

"It’s a slow week in terms of news.”

Eyes on the Fed

Lister said everything is building towards the US Federal Reserve meeting on Dec 18.

“The market is in two minds about whether the Fed will cut or pause the official rate. It’s the last big event of the year and will be a determining factor in how the markets finish the year.”

He said the US jobs report on Saturday morning (NZ time) was the last piece in the puzzle for the Fed. “If the report is super strong, then the Fed might just pause.

The market hopes for a solid jobs report, but it is not too good, so the Fed will cut the rate and bring in the traditional Santa rally.

“If there’s a strong finish to the year, then New Zealand will go along for the ride. The investors have already had their best year in four,” Lister said.

For the year to date, the NZX 50 index is already up more than 11% compared with a rise of 13.9% in 2020. The index was down 0.4% in 2021, down 12% in 2022 and up 2.6% last year.

On a day of few major moves, Summerset increased 31c or 2.44% to $13; Freightways was up 25c or 2.43% to $10.55; Briscoe Group added 13c or 2.43% to $5.48; Spark gained 4.5c to $2.905; Chorus collected 12c to $9.13; and SkyCity improved 3c or 2.08% to $1.47.

In the energy sector, Manawa added 10c or 1.89% to $5.40; Meridian declined 10c to $6.25; and Contact was down 16c or 1.79% to $8.78.

Serko decreased 9c or 2.41% to $3.65; Green Cross Health declined 4c or 4.6% to 83c; Fonterra Shareholders’ Fund eased 10c or 1.82% to $5.38; Oceania Healthcare was down 3c or 4% to 72c; and Seeka shed 5c to $2.90.

Infratil, down 29c or 2.26% to $12.55, has completed its $75m, six-year infrastructure bond offer at 6% a year, and the new bonds will be issued on Dec 13.

Mixed property results

In the property sector, Investore was up 3c or 2.59% to $1.19, and Argosy was down 2.16c or 2.07% to $1.065.

Kiwi Property, unchanged at 93c, has launched a $100m, five-and-a-half-year green bond with the ability to accept up to $25m in oversubscriptions.

Goodman Property Trust, down 2c to $2.07, had its investment grade credit rating of BBB/stable reaffirmed by S&P Global Ratings.

Other decliners were Foley Wines decreasing 4c or 5.71% to 66c; T&G Global down 4c or 2.6% to $1.50; Restaurant Brands shedding 9c or 2.58% to $3.40; Comvita falling 7c or 7.29% to 89c; and Santana Minerals down 1.5c or 2.7% to 54c.

Other gainers were Napier Port collecting 6c or 2.43% to $2.53; South Port NZ up 12c or 2.26% to $5.42; Enprise Group rising 6c or 6.9% to 93c; Bremworth increasing 2c or 5.26% to 40c; PaySauce adding 1.5c or 7.32% to 22c; and TradeWindow up 1c or 4.55% to 23c.

Tourism Holdings, down 1c to $1.98, said at the Resource Rising Stars conference that it was focused on increasing net profit more than last year’s $51.8m in the current 2025 financial year – though the difficulties in recreational vehicle sales are impacting near-term earnings.

The company sees future growth through the ongoing recovery of international tourism, rental demand, and the return of the vehicle sales market to normal conditions.

Vital Limited, unchanged at 27c, is embroiled in a legal stoush over expenses involving Empire Technology’s takeover proposal but didn’t proceed with it. Vital has invoiced Empire $214,814 for expenses incurred.

Empire has refused to pay, and Vital has gone to the Takeovers Panel for a resolution. Empire, meanwhile, has commenced High Court proceedings to seek an order that Vital pay Empire $108,424 in takeover expenses.

Booster Innovation Fund, down 1.2c to $1.448, has invested $100,000 in Christchurch-based software as a service firm OrbViz, established in 2021. Booster has now invested in 35 early-stage companies.

Tags: Market Close