New Zealand shares fell for a second day as the local market continued to ignore the global rally, with exporter Fisher & Paykel Healthcare weighing on the benchmark index.
The S&P/NZX 50 index dropped 89.29 points, or 0.7%, to 12,0760.85. Across the main board, turnover was $218.7 million, of which F&P Healthcare accounted for $79.1 million alone.
The local market again missed out on a broader rally across Asia, where investor sentiment has regained momentum. Australia’s S&P/ASX 200 index was up 0.1% in late trading, while Japan’s Nikkei 225 advanced 1.5% and Hong Kong’s Hang Seng rose 1.8%. US futures were pointing to a 0.3% decline for the S&P 500.
“Our defensive market hasn’t lived up to its reputation in recent weeks,” said Peter McIntyre, an investment adviser at Craigs Investment Partners. “It looks like we’ll be challenging the 12,000 threshold again,” he said, referring to the NZX50 which was last below that level in July.
Exporters were among those leading the benchmark index lower, with the kiwi dollar trading at 58.14 US cents at 5pm in Auckland from 58.23 cents at 7.30am and up from 57.61 cents yesterday.
The a2 Milk Co fell 3.7% to $9.36, snapping a three-day gain, while F&P Healthcare declined 2% to $32.15 on a volume of 2.5 million shares, and fishing company Sanford slipped 2.1% to $4.66.
Fonterra Shareholders’ Fund units rose 0.9% to $5.60, with the dairy cooperative holding roadshows in Australia pitching its Mainland consumer business as a potential listing candidate, and Synlait Milk increased 2.1% to 97 cents.
The gross index
NZX led the benchmark index lower after shedding rights to its 3.1 cents per share dividend, falling 4.4%, or 7 cents, to $1.52.
NZME, which is facing a boardroom ouster from its major shareholders, shed rights to its 6 cent dividend. It decreased 1.7%, or 2 cents, to $1.17.
Oceania Healthcare posted the day’s biggest gain on the benchmark index, up 1.6% at 64 cents, while Goodman Property gained 1.6% to $1.95 and Infratil advanced 0.8% to $10.46.
Carpetmaker Bremworth gained 5% to 63 cents after a deal was cut in its boardroom stoush, with the rebel shareholders’ nominees headed by Rob Hewett replacing three directors. Chairman George Adams and John Rae will stay on the board, with Hewett taking over the chair.
Contact Energy increased 0.4% to $8.63. Its latest operating update reiterated the tepid inflows into the South Island’s hydro lakes, while the power company also had its fast-track application to build a windfarm in Southland turned down by the hearing panel. The significant values of the Jedburgh Plateau wetlands and strong policy directives tied the panel’s hands in coming to its conclusion, the decision said.
Spark New Zealand recovered from its 13-year low, rising 0.7% to $2.075 on a volume of 6.2 million shares, the biggest volume for the day. The telco is still carrying its 12.5 cents dividend.
Auckland International Airport declined 0.8% to $7.87 after selecting Lagardère as its new duty free partner.
Smartpay extended its gain, rising 3.5% to 88 cents having surged on Monday when it confirmed two parties have expressed interest in buying it.
Trading of Tower shares was halted while the insurer returns $45 million to shareholders through a court approved scheme of arrangement, cancelling 1 share for every 10 and paying almost $1.19 per cancelled share.
Reporting by Paul McBeth. Image from charlesdeluvio on Unsplash.