Market close: New Zealand market in red as countdown to 2023 election begins

The Pukaki Canal Intake, which is owned by Meridian Energy. Shares in Meridian Energy fell 13 cents or 2.5 per cent to $5.04 today.

New Zealand’s benchmark index slid as investors started the countdown to the election later this week and waited for key US inflation data, due this Friday.

The S&P/NZX 50 Index fell 82 points, or 0.7 per cent, to 11,205.06. Turnover was $74.9 million. There were 67 gainers and 59 decliners on the main board.

Peter McIntyre, an investment adviser at Craigs Investment Partners, said the New Zealand market had a slow day with light volumes as investors were very much in anticipation mode for the looming election.

Gentailers had dragged the market lower on Friday and were still heading in a downward direction on Monday. Meridian Energy and Genesis Energy both have their annual meetings this week.

Today, Meridian Energy fell 13 cents or 2.5 per cent to $5.04 and Genesis Energy edged down 1.5 cents or 0.6 per cent to $2.48.

Mercury was down 10c or 1.6 per cent to $6.02, Manawa Energy was down 3c or 0.7 per cent to $4.52 and Contact Energy fell 11c or 1.4 per cent to $7.87.

Dairy giant Fonterra boosted its farmgate milk price forecast due to a brighter outlook.

The dairy co-op now predicts a payout ranging from $6.50 to $8 per kilogram of milk solids (kgMS), with a new midpoint of $7.25/kgMS, a 50 cent increase.

The upward adjustment follows two earlier reductions this season when whole milk powder prices fell. Encouragingly, prices at the Global Dairy Trade (GDT) auction have risen for three consecutive events after several declines.

Fonterra Shareholders’ Units ended the day up 8c or 2.7 per cent to $3.08 while A2 Milk was flat at $4.41 per share and Synlait Milk was down 4c or 2.9 per cent to $1.35.

Other big news was that the value of renewable energy firm Infratil’s investment in CDC Data Centres has jumped from around A$3.4b ($3.67b) to A$3.88b in six months, due to rising demand for AI services. The estimated value now falls between A$3.64b and A$4.19b.

Infratil CEO Jason Boyes attributed this growth to increased customer interest in CDC’s data centre services, prompting plans for accelerated construction and expansion in Canberra, Sydney, Melbourne and Auckland.

The valuation assumes 268MW of existing facilities, 265MW under construction and 517MW for future development by 2028, with access to required land.

The cost of equity in the valuation rose from 9.6 per cent to 11.2 per cent between March and September, reflecting higher risk and expansion. Infratil was up 10c or 1 per cent to $10.15.

Briscoe Group was up 13c or 2.9 per cent to $4.64 after it released its interim report.

Meal-kit company My Food Bag went up 1c or 6.3 per cent to 17 cents on light trading.

Tech firm Black Pearl told the New Zealand stock exchange it plans to raise about $4m through a capital raise of 51 cents per share and was down 1c or 1.7 per cent to 58c today.

Task Group was down 2.5 cents or 5.9 per cent to 40c while Serko fell 19c or 4.6 per cent to $3.93.

The New Zealand dollar was trading at US59.85c at 3pm in Wellington, up from US59.66c on Friday. The trade-weighted index was at 71.09, from 70.75 on Friday.