“The US Government shutdown is starting to weigh on people’s nerves,” Craigs Investment Partners investment director Mark Lister said.
“It’s dragged on a little too long now, and it will probably drag on a bit longer, but we’re just not getting the US data that we need to gauge the state of the economy.”
Market heavyweights Fisher and Paykel Healthcare, down $1.33 (3.5%) at $36.25, and Mainfreight, down $1.82 (2.9%) at $60.68, were the main drivers of the index’s fall.
Lister said US tariff concerns are again overhanging F&P Healthcare, which makes respiratory products.
“There is a bit of nervousness about the US Department of Commerce investigation into medical device imports, so it’s hard to know what that leads to,” Lister said.
“It could mean we’re seeing increased tariffs, which will of course eat into earnings for F&P Healthcare over the next couple of years.”
Running against the downward trend were the agri and agri-related stocks.
Farm services company PGG Wrightson, which is due to hold its annual meeting on Tuesday, ended 17c or 7.08% higher at $2.57.
Fonterra’s units gained 11c or 1.4% to $8.21 as the October 30 special meeting to vote on the $4.2 billion sale of its Mainland consumer business nears.
Napier Port, a major exit point for agricultural exports, ended up 6c at $3.40 after telling the market its containerised cargo volume increased by 9.1% in the September year. The port’s bulk cargo volume fell by 1.7%.
Elsewhere, data technology company Black Pearl gained 3.5c to $1.13.
Lister said the market had gained about 15% since its “liberation” day slump in April and had been in positive territory so far this month.
“If we can hold on to those gains, that would be the sixth consecutive month that we’ve been up, and that will be the longest winning streak in at least five years,” he said.
“Getting the big rate cut that we were all hoping for has been good for our yield stocks and our income stocks, such as listed property.”
Over the week, Stride Property, which ended at $1.52, was up 6%.
Retirement village company Summerset, which has housing market exposure, gained 10c to $11.60 on the day and has gained 5% over the week.
Kiwi Property ended flat at $1.12 but has gained 4% on the week.
Retirement village company Ryman Healthcare finished down 2c at $2.89 but made a weekly gain of 11%.
Next week, the US reporting season kicks off, starting with the big banks.
Lister said the results would be a test of whether some Wall Street stocks can justify their current elevated price multiples.
Jamie Gray is an Auckland-based journalist, covering the financial markets, the primary sector and energy. He joined the Herald in 2011.
