Market close: NZ shares fall despite strong Mainfreight result

THe local Sharemarket remains heavy on the sell side. Photo / file

Global operators Mainfreight and Rakon produced record earnings but this time the investors were wary as the New Zealand sharemarket dropped more than half a per cent for the third day running.

The S&P/NZX 50 Index traded strongly for most of the day and then eased late afternoon to close at 11,102.84 down 70.53 points or 0.63 per cent after reaching an intraday high of 11,244.73.

There were 55 gainers and 88 decliners on the main board, with 41.71 million shares worth $156.96m changing hands.

Matt Goodson, managing director of Salt Funds Management, said the local market "is a little bit heavy – the selling orders are dominating the buying orders, as has been the case for several months now.

"The movement in Mainfreight was surprising given its strong result but I guess it had been foreshadowed and trading volume was light," he said.

Global transport and logistics company Mainfreight finished $1 ahead at $76 on trade worth $5.03m after announcing another record result for the year ending March. Net profit increased 88.9 per cent to $355.4m on revenue of $5.22 billion, up 47.2 per cent.

It is paying a final dividend of 87c a share on July 22. Mainfreight's share price went as low as $74.50 and as high as $78 during the day.

Mainfreight said the Air & Ocean, Warehousing and Transport divisions had significantly contributed to profitability and growth, and net profit from businesses outside New Zealand now makes up 72 per cent of the group total.

Rakon declined 11c or 6.75 per cent to $1.52 despite reporting record earnings for the year ending March. Net profit rose 244 per cent to $33.11m on revenue of $171.96m, up 34 per cent. Operating earnings (ebitda) were $54.4m, up 132 per cent.

Rakon told the market that revenue was driven by continued demand and growth in 5G telecommunications networks and precision positioning applications, as well as opportunities created by global chip shortages.

Market leader Fisher & Paykel Healthcare, down 35c to $19.55, held an Investor Day and talked about the three new high-flow products it has launched into the global markets.

Ryman Healthcare, due to fall out of the MSCI global index this Tuesday, continued to climb, gaining 21c or 2.07 per cent to $10.35.

AFT Pharmaceuticals was up 8c or 2 per cent to $4.09; Chorus gained 11c to $7.32; Green Cross Health increased 5c or 3.085 per cent to $1.35; Gentrack collected 5c or 3.23 per cent to $1.60; and Chatham Rock Phosphate picked up a further 7c or 12.96 per cent to 61c.

Insurer Tower, unchanged at 68.5c, reported a 72 per cent fall in net profit to $2.93m on revenue of $214.13m, up 5 per cent for the six months ending March. Tower said the lower profit related to the impact of large storm events in New Zealand and the Tonga volcanic eruption.

Tower is maintaining its full year guidance of $21m-$25m net profit and is paying an interim dividend of 2.5 cents a share on June 30.

Goodson said Tower produced a good result, with premium rises dealing with inflationary cost pressures and only masked by the big-ticket claims.

Among energy companies Contact was down 20c or 2.61 per cent to $7.46, and Mercury also fell 20c or 3.45 per cent to $5.60.

Genesis Energy, up 3c to $2.72, has launched a $225m, 30-year green capital bond, with the ability to accept $60m over-subscriptions.

Eroad plunged 26c or 8.72 per cent to $2.72 after reporting a net loss of $9.62m on increased revenue of $114.9m for the year ending March. Eroad has fallen from a high of $6.70 set in late July last year.

Eroad, which merged with Coretex, told the market it is in a period of significant transition to build greater growth and is forecasting revenue of $150m-$170m in the 2023 financial year.

Pacific Edge fell 6c or 7.23 per cent to 77c after reporting a loss of $19.78m on revenue of $11.44m, up 49 per cent, for the year ending March. Total laboratory throughput of Cxbladder rose 46 per cent to 23,086 tests and commercial test volumes increased 48 per cent to 19,196.

Other decliners were a2 Milk down 12c or 2.48 per cent to $4.72; Auckland International Airport shedding 9.5c to $7.255; Hallenstein Glasson falling 15c or 2.75 per cent to $5.30; and Briscoe Group decreasing 13c or 2.17 per cent to $5.86.

DGL Group fell 15c or 4.48 per cent to $3.20; SkyCity Entertainment was down 5c or 1.84 per cent to $2.67; Napier Port shed 8c or 2.83 per cent to $2.75; and Vulcan Steel declined 31c or 3.1 per cent to $9.68.

NZME was down 5c or 3.7 per cent to $1.30; Sanford declined 14c or 3.23 per cent to $4.19; Harmoney decreased 7c or 2.61 per cent to $7.46; and Accordant Group fell 17c or 8;.02 per cent to $1.95.