Market commentaries

WELLINGTON: New Zealand shares dropped back, led lower by Mercury NZ and SkyCity Entertainment Group, as yesterday’s gains were not repeated.

The S&P/NZX50 Index fell 30 points, or 0.3%, to 9195.57. Within the index, 31 stocks fell, 15 rose and four were unchanged. Turnover was $123.8 million.

The local market did not repeat Tuesday’s 2% gain, when 38 stocks rose and turnover was $203 million.

David Price, broker at Forsyth Barr, said Tuesday was a ‘‘day in isolation’’.

‘‘Volumes were quite good, and it was the only day we’d had up in a week or so. Every other day has been a drift down, and today’s no different — on relatively light volume considering the move.’’

‘‘The results season was OK — there were more downgrades than upgrades for us,’’ Mr Price said.

‘‘The market needed more to push on, and I don’t think there was the expectation we were going to get it because there’s been a lot of costs coming at business through fuel, wages across the board. That’s going to be the problem going forward.’’

Mercury was the worst performer, down 2.7% or 9c to $3.29. It gave up rights to a 9.1c final dividend yesterday.

SkyCity dropped 2.4% to $4.07 and Air New Zealand fell 1.7% to $3.16.

New Zealand Refining Co, which shed a 3c final dividend, dropped 1.6% or 4c to $2.54. Sky Network Television declined 1.4% to $2.08.

Comvita was the best performer, up 2.6% to $5.92. Scales Corp rose 2.3% to $4.91 and Pushpay Holdings gained 1.9% to $3.86.

Market operator NZX gained 0.9% to $1.08. It has signed a memorandum of understanding with the operator of the techheavy Nasdaq bourse to let toptier American companies apply for a secondary listing locally.

The deal is the latest effort by NZX to develop closer links with international peers as it seeks to promote local investment products and drive greater liquidity through its own platform.

Outside the benchmark index, Tilt Renewables was unchanged at $2.31. Its independent directors have repeated their advice that shareholders reject a takeover offer from major shareholders Infratil and Mercury NZ. Tilt yesterday announced a 15year supply deal with Victoria’s state government for part of the output from the company’s proposed Dundonnell wind farm.

Infratil dipped 0.6% to $3.465.

A The Australian sharemarket has returned to its downward trend, closing lower on Wednesday after a rare gain a day earlier as USChina trade concerns again weigh on investor confidence.

The benchmark S&P/ASX200 index closed down 3.8 points, or 0.06%, at 6175.9 points yesterday, while the broader All Ordinaries index was down 3.7 points, or 0.06%, at 6283.9 points.

Australian stocks followed in the tracks of Asian markets, which slipped to 14month lows on Wednesday with investor confidence chilled by the latest round of verbal threats in the intensifying USChina trade conflict.

China told the World Trade Organisation (WTO) on Tuesday it wanted to impose $US7 billion a year in sanctions on the United States in retaliation for Washington’s noncompliance with a ruling in a dispute over US dumping duties.

Separately, US President Donald Trump told reporters on Tuesday the United States was taking a tough stance with China. — BusinessDesk/AAP