Sharemarket dips as investors take profits - market close

Turners Automotive Group is joining the S&P/NZX 50. Photo / 123RF

The New Zealand sharemarket took a pause from its six-week rally, weighed down by some profit-taking. But the market was still heartened by the continuing fall in wholesale interest rates.

The S&P/NZX 50 Index closed at 11,550.2, down just 2.68 points or 0.02 per cent, after having a late surge in the last hour. The index gained nearly 0.5 per cent for the week and is now up 0.7 per cent for the year to date.

There were 97 gainers and 42 decliners over the whole market with 112.61 million shares worth $320.21 million changing hands. The trading session was extended for the final day of the quarterly rebalancing for the NZX and FTSE Russell indices.

Turners Automotive, down 10c or 2.09 per cent to $4.68 on trade worth $15.28m, and Gentrack, rising 37c or 5.75 per cent to $6.81 on trade of $26.42m, are joining the NZX top 50. Synlait Milk, unchanged at 95c, and Pacific Edge, declining 0.005c or 6.25 per cent to 7.5c, are being removed.

Shane Solly, portfolio manager with Harbour Asset Management, said the market rally has been in full swing and it was time to turn the noise down.

“There’s been a bit of profit-taking going on, and it’s been a strong week, boosted by the lower interest rates globally.

“With interest rates stabilising and the cost of capital becoming less of an issue, the mix is there for merger and acquisition activity amongst under-valued stocks. We’ve seen it in the Australian market and New Zealand could rejoin that party,” Solly said.

The NZ 10-Year Government Bond yield has settled at 4.56 per cent, a full 1 per cent drop from 5.57 per cent on October 19. The US 10-Year Treasury Note yield went below 4 per cent for the first time since August, trading at 3.948 per cent.

The Dow Jones Industrial Average Index climbed higher, increasing 0.43 per cent to 37,248.35 points, and the S&P 500 was just 1.6 per cent off its all-time high with a 0.26 per cent gain to 4719.55.

Wellington-based Volpara Health Technologies, listed on the Australian ASX market, has accepted a takeover offer from South Korean medical artificial intelligence company Lunit for $A1.15 ($1.23) a share. Volpara, a global leader in software for the early detection of breast cancer, with most of its business in the United States, had traded around A70c for the last 12 months.

At home, the retirement village and property sectors benefited from the fall in interest rates.

Summerset Group rose 42c or 4.34 per cent to $10.10 and Ryman Healthcare was up 4c to $5.35.

Property stocks Argosy increased 3c or 2.86 per cent to $1.08; Vital Healthcare Trust rose 9c or 4.29 per cent to $2.19; Stride added 5c or 3.68 per cent to $1.41; Property for Industry collected 4.5c or 2.04 per cent to $2.25; Precinct was up 3c or 2.56 per cent to $1.20; and Kiwi picked up 4c or 4.88 per cent to 86c.

Ebos Group fell $1.18 or 3.28 per cent to $34.82; Fisher and Paykel Healthcare was down 76c or 3.07 per cent to $23.99; and Mainfreight shed $1.11 to $67.11.

Meridian, up 10c or 1.88 per cent to $5.41, said in its latest operating report that national hydro storage fell from 100 per cent to 88 per cent in the month to December 11. National electricity demand in November was 0.7 per cent higher than the same month last year, and retail sales volumes increased 3.2 per cent.

Of other energy companies, Manawa was up 21c or 5.06 per cent to $4.36, and Genesis gained 7c or 2.85 per cent to $2.53.

ANZ Bank increased 66c or 2.46 per cent to $27.51; Freightways was up 28c or 3.49 per cent to $8.30; Skellerup gained 14c or 2.83 per cent to $5.09; SkyCity improved 5c or 2.78 per cent to $1.85; Channel Infrastructure added 3c or 2.1 per cent to $1.46; and Marlin Global Fund rose 5c or 5.75 per cent to 92c.