Market commentaries
WELLINGTON: New Zealand shares fell yesterday, led lower by continued selling in a2 Milk Co and Comvita.
The S&P/NZX50 Index dropped 2.4 points to 8613.32. Within the index, 24 stocks fell, 16 rose and 10 were unchanged. Turnover was $140 million.
The index was led lower by a2 Milk Co which was down 3% to $10.71. Last week, its shares slumped 13% after it missed expectations, prompting some analysts to reassess what have been optimistic assumptions for the company’s outlook.
Hamilton Hindin Greene investment adviser Grant Davies said the market was quiet yesterday ahead of a number of company earnings today — Argosy Property, Serko and AFT Pharmaceuticals are set to report.
Honey products exporter Comvita dropped 2.6% to $6.07, having fallen 8% on Monday when it said it had pulled out of talks with an unnamed third party looking to take it over as they could not reach a deal on price.
Kathmandu Holdings fell 1.9% to $2.53, Contact Energy declined 1.4% to $5.56, and Australia and New Zealand Banking Corp lost 1.3% to $30.39.
Ryman Healthcare was the best performer, up 1.8% to $11.60.
Heartland Bank gained 1.7% to $1.83. On Friday, the bank posted it had lifted thirdquarter profit 11% on continued lending growth.
Fisher & Paykel Healthcare Corp rose 1.3% to $13.35, Precinct Properties New Zealand gained 1.2% to $1.28, and Skycity Entertainment Group rose 1% to $3.99.
Outside the benchmark index, Steel & Tube Holdings shares have been halted from trading at $1.98 pending a board review of the steel products maker’s financial performance.
The Australian market share yesterday posted its largest daily fall in seven weeks because of weakness for Telstra, the major banks and the mining giants.
AThe benchmark S&P/ASX200 index was down 42.6 points at 6041.9 points while the broader All Ordinaries index was down 40.3 points at 6149.9.
Australian Stock Report chief market strategist Chris Conway said a lack of positive news contributed to the negative reaction to ‘‘pretty damning’’ evidence at the latest hearings of the financial services royal commission.
The commission is hearing evidence about the banks and their assessments of business owners seeking loans.
‘‘The financials started a bit of a nose dive and the rest of the market followed suit,’’ Mr Conway said.
Westpac dropped 0.8% to $28.43, ANZ shed 1.6% to $27.86, National Australia Bank slid 0.6% to $27.09 and Commonwealth Bank gained 0.2% to $70.25 after a late rally.
Telstra shares continued to slide, dropping 2.2% to a new sevenyear low of $2.74.
BHP fell 0.7% to $33.71, Rio Tinto shed 0.5% to $84.60 and Fortescue Metals was 1.7% weaker at $4.63.
Building products maker James Hardie gained 4% to $23.35 after it reported a 17% increase in its fullyear adjusted operating profit and lifted its final dividend.
National turnover was 2.78 billion securities traded worth $5.33 billion. — BusinessDesk/AAP