The index has blown out to a fall of more than 17 per cent this year. Photo / NZME
All the attention is on the latest inflation rates, both here and in the United States, as the quiet New Zealand sharemarket drifted to another half per cent loss.
The S&P/NZX 50 Index was down 55.75 points or 0.51 per cent to 10,817.48 after reaching an intraday high of 10,887.54. The index has declined nearly 2.6 per cent this week and has blown out to a fall of more than 17 per cent this year.
There were 53 gainers and 83 decliners on the main board, with 25.55 million shares worth $88.63 million changing hands.
Greg Main, Jarden Wealth Management adviser, said the local market was trading sideways – until it gets a big steer from the US.
"Investors are waiting for the September consumer price index (CPI) number and the start of the latest reporting season and the outlook for future earnings. The mighty US dollar and economy does influence the global activity," Main said.
The headline inflation number, released overnight, is expected to decline from 8.3 per cent to 8.1 per cent. And the big US banks are the first to report their quarterly earnings at the end of the week.
New Zealand's September CPI will be reported next week, and ANZ Research expects annual inflation to fall to 6.6 per cent, from 7.3 per cent at the end of June and slightly higher than the Reserve Banks forecast of 6.4 per cent.
The bulk of the decline in headline inflation is expected to come from a sharp drop in petrol prices, the bank said. "All up, next week's inflation report is unlikely to contain the evidence needed to convince the Reserve Bank that underlying inflation has turned the corner."
The ANZ still sees the official cash rate peaking at 4.75 per cent in May next year, "unless there is a step change in the outlook."
The dividend energy stocks were again weaker. Meridian fell 12c or 2.54 per cent to $4.60; Contact was down 13c or 1.8 per cent to $7.11; Mercury declined 6c to $5.20; and Manawa was up 4c to $5.48.
In the retirement sector, Summerset Group was up 12c to $9.92; Arvida rebounded 2c to $1.33; and Oceania Healthcare was down 3c or 3.33 per cent to 87c, reaching a new two-year low after falling from $1.60 achieved on February 5 last year.
Fisher and Paykel Healthcare declined 30c to $18.10; Spark was down 6c to $5.07; Skellerup Holdings went under $5 after declining 8c to $4.97; Briscoe Group decreased 12c or 2.24 per cent to $5.23; and Rakon shed 5c or 4.17 per cent to $1.15 – its lowest level in a year.
Tourism Holdings gained a further 10c or 3.45 per cent to $3; Seeka was up 15c or 3.97 per cent to $3.93; Delegat Group added 10c to $10.60; SkyCity Entertainment gained 4c to $2.68; and PGG Wrightson increased 7c to $4.37.
Air New Zealand gained 2c or 2.76 per cent to 74.5c. Its rival across the Tasman Qantas Airways was up 8.3 per cent, at 6pm NZ time, to A$5.60 ($6.26).
T&G Global rose 11c or 4.25 per cent to $2.70; Serko improved 4c to $3; Gentrack was up 3c or 1.87 per cent to $1.68; and NZ King Salmon Investments gained 1c or 4.44 per cent to 23.5.
Leading banks had a strong day, with Westpac increasing 55c or 2.19 per cent to $25.70, and ANZ gaining 35c to $28.10.
Heartland Group, unchanged at $1.65, told the market that the accounting treatment of a derivative expense will reduce the 2023 full-year net profit by $6.6m but the overall profit will still be in the guidance range of $109m-$114m.
Napier Port, down 4c to $2.78, reported that total cargo declined to 5.47 million tonnes for the year ending September, though it was the second highest annual volume. Container movements decreased 7.9 per cent and bulk cargo was down 7.6 per cent.
In the fourth quarter container volume was down 0.6 per cent and bulk cargo declined 11.5 per cent. Napier Port will next week begin buying back about 125,000 shares on-market over a period of 12 months.
Other decliners were Marsden Maritime Holdings decreasing 10c to $5.92; Smartpay Holdings, down 3c or 4.14 per cent to 69.5c; Trade Window falling 3c or 4.84 per cent to 59c; and Accordant Group down 4c or 2.38 per cent to $1.64.
In the six months since converting to a fuel import terminal, Channel Infrastructure at Marsden Point has handled 35 shipments and distributed 1.5 billion litres of product to the Auckland and Northland markets. Jet fuel throughput is improving and approaching 60 per cent of pre-Covid levels.
The decommissioning of the refinery plant is three-quarters through, with a budgeted $98m so far spent. Channel's share price was down 1c to $1.43.
Medicinal cannabis company Greenfern Industries increased 0.002c to 12.5c after opening its one for 1.3736 rights issue, at 8c per new share, to raise $5m.