Market close: Dramatic day for Mainfreight as NZ sharemarket loses steam

Mainfreight had a dramatic turn, closing down 80c to $74.50 after reaching an intraday high of $77.20. Photo / Supplied

After having a good run in the face of international economic pessimism, the New Zealand sharemarket finally lost heart and fell nearly half a per cent.

The S&P/NZX 50 Index reached an intraday afternoon high of 11,677.41 points following a sluggish morning but slumped in the last half-hour matching session, closing down 47.55 points or 0.41 per cent to 11,601.1.

Trading picked up late in the day with 48.15 million shares worth $191.41 million changing hands, and there were 75 gainers and 65 decliners on the main board.

Greg Smith, head of retail with Devon Funds Management, said the local market did have a spring in its feet coming off the back of a better-than-expected reporting season.

"Our company financial results provided some impetus while overseas markets were anxious. Since mid-August the local market has remained reasonably flat while the S&P 500 in the United States has fallen nearly 7 per cent."

The latest ANZ survey showed business confidence has improved with a lift of 9 points in August from a low base of minus 48 and expected own activity increased 5 points to minus 4.

ANZ said a mood lift is evident among manufacturing, agriculture and services companies, but retail firms continue to get more pessimistic.

Fisher and Paykel Healthcare led the market down late in the day, falling 46c or 2.29 per cent to $19.66 on trade worth $22.97m.

Mainfreight had a dramatic turn, closing down 80c to $74.50 after reaching an intraday high of $77.20.

Mercury Energy was down 13c or 2.19 per cent to $5.80; Summerset Group Holdings declined 22c or 1.95 per cent to $11.05; and Auckland International Airport decreased 11c to $7.56.

The stellar run of a2 Milk ended with a fall of 13c or 2.04 per cent to $6.23 after providing the highlight of the reporting season with a sales recovery in China and 52 per cent lift in net profit.

Port of Tauranga was up 7c to $6.72, Napier Port added 7c or 2.42 per cent to $2.96; Ryman Healthcare increased 12c to $9.19; and Scales Corporation gained 12c or 2.6 per cent to $4.73.

Michael Hill International, one of the companies reporting a solid result, continued its rise, increasing 5c or 4.12 per cent to $1.27.

T&G Global was up 5c or 1.92 per cent to $2.65; Sky Network Television increased 7c or 2.92 per cent to $2.47; NZME added 4c or 3.15 per cent to $1.31; PGG Wrightson gained 9c or 1.91 per cent to $4.80; and Synlait Milk improved 12c or 3.57 per cent to $3.48.

Bremworth was up 3c or 5 per cent to 63c; Plexure Group improved 1.5c or 4.11 per cent to 38c; Chatham Rock Phosphate rose 2c or 6.15 per cent to 34.4c; and Good Spirits Hospitality put on 0.06c or 12.24 per cent to 5.5c.

Sky City Entertainment was down 7c or 2.4 per cent to $2.85, and My Food Bag declined 2c or 2.78 per cent to 70c.

Transtasman online personal lender Harmoney gained 2c or 2.67 per cent to 77c after making a statutory net profit of $212,000 on steady revenue of $78m for the year ending June. Harmoney's loan book increased from $501m to $642m.

Radius Residential Care, down 0.005c to 35.5c, is buying Matamata Country Lodge and three neighbouring properties for $17.1m. The lodge has 40 retirement village units and 85 beds in the care home. A concept design for 18 new villas has been completed.