Market close: Another solid retail result fails to move investors

Hallenstein Glasson Holdings posted a strong half-year result but its share price slipped 12c to $7.38. Photo / File

The New Zealand sharemarket finished the week on a soft note, heading towards a half per cent fall – and even another solid retail result failed to move investors.

The S&P/NZX 50 Index fell 39.22 points or 0.32 per cent to 12,348.83 after reaching an intraday high of 12,405.64. There were 71 gainers and 63 decliners over the whole market on heavy volume of 53.69 million share transactions worth $225.37 million.

Dan Stratful, an investment adviser with Forsyth Barr, said the market was struggling through a soft patch – even though Wall St and the Australian ASX were up.

The rallying Dow Jones Industrial Average rose 0.62 per cent to 32,619.48 overnight, and the S&P/ASX 200 Index was up 0.54 per cent to 6827.30 at 5.45 pm (NZ time).

Stratful said: "with the NZ dollar and the Government 10-year bond yield coming off the way it has, you'd think this would give support to the local market, and maybe it will. The index is still above the low posted earlier this month and it should hold that level."

Hallenstein Glasson Holdings followed fellow retailers Briscoe Group, Kathmandu and The Warehouse Group by posting a strong half-year result but its share price slipped 12c to $7.38.

Hallenstein's revenue increased 13.6 per cent to $181.97m and net profit climbed 28.6 per cent to $19.84m for the six months ending February 1. The clothing retailer said group sales were ahead 17.8 per cent for the first seven weeks of the winter season, and it is paying a 23c a share interim dividend on April 16.

Briscoe, which has gone ex-dividend, was up 14c or 2.52 per cent to $5.69; Kathmandu gained 2c to $1.37 and The Warehouse fell 14c or 3.7 per cent to $3.64. Fast-food operator Restaurant Brands rose 26c or 2.07 per cent to $12.85.

Stratful said the retailers have been the shining lights lately – The Warehouse's share price is at a near eight-year high – but is this as good as it gets? When the border reopens, spending will no doubt shift to travel and tourism.

The travel stocks, however, had a tough day. Auckland International Airport fell 23c or 3.06 per cent to $7.29, and Air New Zealand was down 2.5c to $1.765.

Market leader Fisher and Paykel continued its strong run, rising 20c to $32.50 on trade worth $27.42m; Ebos Group increased $1 or 3.51 per cent to $29.50; and Skellerup Holdings was up 13c or 3.2 per cent to $4.19.

Other gainers were Seeka up 8c to $4.98; Synlait Milk increasing 10c or 2.9 per cent to $3.55; and Scales Corporation gaining 12c or 2.68 per cent to $4.60. New listing My Food Bag turned a corner, rising 5c or 3.29 per cent to $1.57.

Have the exchange-traded funds started positioning themselves? There was heavy trading in the leading energy stocks, with Mercury falling 25c or 3.88 per cent to $6.20 on trade worth $25.36m; Contact declined 6c to $6.76 with $16.62m worth of shares changing hands; and Meridian decreased 5.5c to $5.105 on trade worth $20.83m. Trustpower fell 9c to $7.96 and Vector was down 5c to $4.15.

The leading retirement village operators, shaken by the government housing measures, had another weak day – Summerset Group Holdings falling 25c or 2.09 per cent to $11.70 and Ryman Healthcare down 9c to $14.87.

Chorus was down 19c or 2.54 per cent to $7.30; Port of Tauranga shed 10c to $7.40; and a2 Milk had another fall, declining 12c to $8.75, after beginning its big slide from $19.92 on August 20 last year. Personal lender Harmoney was down 11c or 4.49 per cent to $2.34.

Sky Network Television is selling two of the three buildings – with lettable area of 9300sq m – at its Auckland Mt Wellington site and its share price increased 0.002c to 17.7c.

Australian telecommunications company Telstra Corporation is delisting from the NZX on June 18 and will solely trade on the ASX market across the Tasman, with New Zealand shareholdings, which have been declining, transferred automatically. Telstra's share price rose 7c or 1.93 per cent to $3.70.