Port of Tauranga, the country's biggest cargo gateway, saw shares increase 6c Photo / Supplied
There wasn’t much merriment on the New Zealand sharemarket as it headed into Christmas week – with dividend stocks dragging the index down.
The S&P/NZX 50 Index drifted down 85.51 points or 0.74 per cent to 11,518.14 and reached an intraday low of 11,498.55. The index has now fallen more than 11.5 per cent this fateful year, dominated by rising interest rates and central banks’ battle to beat inflation.
There were 102 decliners and 41 gainers on the main board, with 37.57 million shares worth $97.8m changing hands.
Greg Main, Jarden Wealth Management adviser, said the local market is lacking direction and “I think we may see a softer tone going in to the end of the year. This is keeping investors on the sideline.
“People are digesting what the central banks are doing and the approach is higher rates for longer. This has dampened things down.
“Central bankers have their own credibility to look after. They came late in raising rates and now they need to keep monetary policy restrictive for a longer period to get inflation back to around 2 per cent,” Main said.
The dividend-paying energy sector was weaker, though Meridian gained 8.5c to $5.18. Mercury fell 13.5c or 2.36 per cent to $5.595; Vector was down 5c to $4.25; Manawa declined 10c or 1.96 per cent to $5; and Genesis decreased 2c to $2.66.
Contact, down 2c to $7.88, has replaced its existing loan arrangements with a new $850m sustainability-linked facility, with ANZ New Zealand and Westpac NZ the joint lead arrangers. Contact joined the Dow Jones Sustainability Asia Pacific Index earlier this month.
In the property sector, Goodman Trust shed 5.5c or 2.66 per cent to $2.015; Precinct was down 1.5c to $1.335; and Property for Industry declined 3c to $2.33.
Synlait Milk was down 11c or 3.03 per cent to $3.52 after reducing its forecast milk price to $9 per kgMS, from $9.50 because of softer dairy commodity prices in the first half of the 2022/23 season and the outlook for the remainder of the season.
Fonterra Shareholders’ Fund decreased 7c or 2.13 per cent to $3.21; while a2 Milk was up 5c to $7.07.
Mainfreight fell $3.03 or 4.29 per cent to $67.57; Auckland International Airport decreased 8c to $8.03; Restaurant Brands shed 28c or 4.46 per cent to $6; Spark declined 7c to $5.27; and SkyCity Entertainment was down 5c or 1.94 per cent to $2.53.
Retirement village operators Oceania Healthcare decreased 2c or 2.53 per cent to 77c, and Arvida Group was down 5c or 4.2 per cent to $1.14.
Tourism Holdings declined 7c or 1.89 per cent to $3.63; Tower was down 3c or 4.03 per cent to 71.5c; Pacific Edge decreased 2c or 3.92 per cent to 49c; and NZX shed 4c or 3.15 per cent to $1.23,
AFT Pharmaceuticals was down 11 or 3.03 per cent to $3.52; Heartland Group shed 4c or 2.17 per cent to $1.80; Steel & Tube decreased 3c or 2.31 per cent to $1.27; Winton Land declined 4c or 2.31 per cent to $1.69; NZ Rural Land Company was down 3c or 2.75 per cent to $1.06; and Private Land and Property Fund fell 4.5c or 3.45 per cent to $1.26.
Booster Innovation Fund was the day’s biggest riser, gaining 7.8c or 5.65 per cent to $1.459.
Port of Tauranga was up 6c to $6.48; Gentrack added 5c or 1.96 per cent to $2.60; Rakon picked up 2c or 1.9 per cent to $1.07; Green Cross Health gained 3c or 2.27 per cent to $1.35; CDL Investments added 1.5c or 2.04 per cent to 75c; Eroad collected 3c or 3.23 per cent to 96c; and Carbon Fund increased 4c or 1.82 per4 cent to $2.24.
NZME, down 2c to $1.14, has completed its 12-month buyback programme of 14.7m shares, representing 7.4 per cent of the shares on issue. The purchase amount was $17.5m and NZME had already paid a special dividend worth $9.7m.
Cannasouth, down 2c or 6.67 per cent to 28c, is merging with Katikati-based medicinal company Eqalis which was established in 2019. Mark Lucas will remain as chief executive and Eqalis managing director Greg Misson will become chiefg innovation officer.
New Zealand Oil & Gas, up 0.005c to 41.5c, has signed a two-year, fixed-price gas supply agreement with South32 Cannington for 0.38 Petajoules from the Mereenie field in Northern Territory.
Chatham Rock Phosphate was up 1c or 5 per cent to 21c. The company earlier put out a NZX notice saying Linda Sanders was inadvertently described as an independent board member in annual meeting information between 2017 and 2022. The disclosure was incorrect as Sanders and Chatham chief executive Chris Castle have been a de facto couple for 38 years.