NZX continues to drift lower - Market close

Napier Port shares were down 3.94 per cent to $2.44 on small trading after reporting a further fall in container volumes and a recovery in log exports. Photo / Doug Laing

The New Zealand sharemarket was still in holiday mode, starting the new week when offices are reopening on lighter than normal trading and a fall of more than half a per cent.

The S&P/NZX 50 Index continued to drift lower on the surprisingly small volumes and closed at 11,772.9, down 85.4 points or 0.72 per cent.

There were 54 gainers and 78 decliners over the whole market, with 14.25 million shares worth $42.4 million changing hands.

Matt Goodson, managing director of Salt Funds Management, said there were a lot of small movements on very light turnover. “I wouldn’t read too much into them.

“Over the next few days as companies see their management accounts for the period ending December we may see more [trading] updates and more activity,” he said.

Mercury Energy down 14c or 2.11 per cent to $6.50, Summerset Group declining 28c or 2.5 per cent to $10.90 and a2 Milk shedding 10c or 2.24 per cent to $4.36 led the market down.

Of other energy stocks, Manawa was down 7c to $4.33 and Vector declined 7c or 1.85 per cent to $3.71.

Ebos Group was down 35c to $35.65; Chorus decreased 6c to $7.82; Auckland International Airport shed 7.5c to $8.62; Fletcher Building declined 7c to $4.78; and PGG Wrightson shed 8c or 2.36 per cent to $3.31.

Napier Port was down 10c or 3.94 per cent to $2.44 on small trading worth $10,300 after reporting a further fall in container volumes and a recovery in log exports. Container volumes were down 28.3 per cent to 43,000 TEUs (20-foot equivalent units) for the first quarter ending December compared with the previous corresponding period.

Total bulk cargo increased 3.2 per cent to 1.01 million tonnes, with the log trade rising 10.6 per cent and continuing the positive momentum seen in the fourth quarter last year, the port company said.

Goodson said Napier’s numbers are not too much of a worry – it’s how they fare with the horticultural volumes and Pan Pac pulp and paper getting up and running in the Hawke’s Bay following Cyclone Gabrielle.

Vital Healthcare Property Trust, declining 1.5c to $2.165, told the market that it expects a $145m, or 4.4 per cent, revaluation loss on its portfolio for the six months ending December.

Vital sold five aged-care facilities leased to Hall & Prior on December 19 for $65m and the money will be used to repay debt. The sale price was a 1 per cent discount on the June book value.

Goodson said Vital’s revaluation reflects a further softening in cap rates – 16 basis points across the portfolio – because of the recent rally in bond yields.

“Perhaps we are getting towards the end of the cycle for rising yields but it’s been hard for valuers. The revaluation lifts the debt ratio and Vital has sold property to keep the debt under control,” he said.

Of other property companies, Investore was down 3c or 2.5 per cent to $1.17 and Goodman Trust declined 5c or 2.22 per cent to $2.20.

Seeka fell 6c or 2.34 per cent to $2.50; Delegat Group shed 10c to $6.70; Gentrack declined 12c or 1.8 per cent to $6.53; Arvida Group was down 3c or 2.48 per cent to $1.18; and Air New Zealand decreased 1c to 63.5c.

Other decliners were NZ Rural Land Company down 2c or 2.38 per cent to 82c; Geneva Finance shedding 2c or 5.56 per cent to 34c; and ikeGPS decreasing 2c or 3.7 per cent to 52c.

In Australia, Super Retail – owner of Super Cheap Auto, Rebel Sport and Macpac – had increased 5.9 per cent to A$16.73 ($17.96) after indicating first-half revenue of A$2.02 billion, a rise of 3 per cent, and gross profit of $200m-203m, ahead of market expectation. “That’s an interesting lead for retailers here,” said Goodson.

Briscoe Group, owner of Rebel Sport in New Zealand, was down 3c to $4.62, and The Warehouse declined 5c or 3.11 per cent to $1.56.

T&G Global increased 4c or 2.09 per cent to $1.95; Scales Corp was up 5c to $3.40; and Pacific Edge added 0.002c or 1.9 per cent to 10.7c.

New Zealand King Salmon Investments was up 0.005c or 1.92 per cent to 26.5c on the day it announced Deloitte Corporate Finance partner Paul Munro as an independent director from March 1. He replaces former chief executive and long-time director Paul Steere.