About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   tmmonline.nz  |   landlords.co.nz
Last Article Uploaded: Wednesday, December 19th, 9:55PM
rss
The Markets

Huawei CFO arrest reignites trade fears; A2 drops

New Zealand shares fell, joining a sell-off across Asia, as the arrest of a Huawei executive reignited fears about US-China trade tensions. Chinese-focused exporter A2 Milk declined.

Thursday, December 6th 2018, 9:20PM

by BusinessDesk

The S&P/NZX 50 index decreased 23.31 points, or 0.3 percent, to 8,758.22. Within the index, 25 fell, 16 rose, and nine were unchanged. Turnover was $113.4 million.

Stocks across Asia fell after Huawei chief financial officer Wanzhou Meng - the daughter of founder Ren Zhengfei - was arrested in Canada and faces extradition to the US. The news reversed optimism that the US and China were finding common ground in their protracted dispute after presidents Donald Trump and Xi Jinping agreed to work towards better relations.

"The Huawei news shows how fragile things are towards this trade issue that's dominated markets for a number of months," said Greg Smith, head of research at Fat Prophets.

A2 Milk fell 2.7 percent to $10.76 on average volumes; its supplier Synlait Milk was down 0.4 percent at $9.41.

The news came the same day Fonterra Cooperative Group reported weaker first-quarter earnings and lowered its forecast payout to farmers due to a global oversupply that's weighing on prices. Units in the Fonterra Shareholders' Fund declined 0.2 percent to $4.70.

Fonterra also said it's investigating a sale of its Tip Top ice cream business, confirmed the end to a joint-venture with Beingmate Baby & Child Food, and said a third asset was under the microscope too.

Smith said it would make sense for Fonterra to carve out Tip Top and list it as a separate entity. It could be sold in tranches and that could help keep it in New Zealand ownership. "There would certainly be an appetite for it."

NZX was much busier than usual with 2.1 million shares changing hands, compared to the 90-day average of 152,000. It was unchanged at $1.02. The stock market operator's monthly metrics showed increased trading activity on-market, although of smaller value.

Auckland International Airport was the busiest stock with a volume of 2.4 million, more than twice its average. It gained 1.6 percent to $7.21. Kiwi Property Group was also heavily traded on a volume of 2.3 million, up 0.7 percent at $1.37. Spark New Zealand fell 0.6 percent to $4.185 on 2.2 million shares.

Of other companies trading on more than one million shares, Meridian Energy decreased 0.2 percent to $3.30, Argosy Property rose 0.9 percent to $1.15, Trade Me fell 1.3 percent to $6.16 and Contact Energy slipped 0.2 percent to $5.76.

Kathmandu fell 2.9 percent to $2.65 on very light volumes. The kiwi dollar rose to an eight-month high against the Australian dollar, reducing the value of exports for the retailer which gets more than two-thirds its sales across the Tasman.

Ebos Group, which also has major Australian operations, fell 2.6 percent to $21.02.

Heartland Group rose 2.7 percent to $1.51, the biggest gain on the benchmark index, on light volume.

Outside the benchmark index, Energy May rose 13 percent, or 0.2 cents, to 1.8 cents after shareholders agreed to a reverse listing transaction for payroll software firm PaySauce.

Tags: Market Close

« NZ shares join global decline as trade jitters re-emerge; Gentrack, F&P Health fallNZ shares rally on speculation of flat US rate track; Spark gains »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

AM Update - Your morning business news update

Previous News
Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
ANZ 5.79 4.55 4.79 4.99
ANZ Special - 4.05 4.29 4.49
ASB Bank 5.80 ▲4.45 4.69 4.89
ASB Bank Special - ▲4.05 4.29 4.49
BNZ - Mortgage One 6.50 - - -
BNZ - Rapid Repay 5.95 - - -
BNZ - Special - 4.10 4.29 4.49
BNZ - Std, FlyBuys 5.90 4.69 4.79 4.99
BNZ - TotalMoney 5.90 - - -
Credit Union Auckland 6.70 - - -
Credit Union Baywide 6.15 5.20 5.25 -
Lender Flt 1yr 2yr 3yr
Credit Union North 6.45 - - -
Credit Union South 6.45 - - -
Finance Direct - - - -
First Credit Union 5.85 - - -
Heartland 6.70 7.00 7.25 7.85
Heartland Bank - Online - - - -
Heretaunga Building Society 5.75 4.70 4.85 -
Housing NZ Corp 5.80 4.69 4.79 4.79
HSBC Premier 5.89 3.99 4.19 4.69
HSBC Premier LVR > 80% - 3.79 - -
HSBC Special - - - -
Lender Flt 1yr 2yr 3yr
ICBC 5.80 4.59 4.69 5.09
Kiwibank 5.80 4.55 4.69 4.99
Kiwibank - Capped - - - -
Kiwibank - Offset 5.80 - - -
Kiwibank Special - 4.05 4.29 4.49
Liberty 5.69 - - -
Napier Building Society - - - -
Nelson Building Society 6.10 5.10 5.45 -
Resimac 5.30 4.86 4.94 5.30
RESIMAC Special - - - -
SBS Bank 5.89 4.85 5.05 4.49
Lender Flt 1yr 2yr 3yr
SBS Bank Special - ▼4.15 ▲4.29 4.49
Sovereign 5.90 4.45 4.69 4.89
Sovereign Special - ▲4.05 4.29 4.49
The Co-operative Bank - Owner Occ 5.75 4.10 4.35 4.49
The Co-operative Bank - Standard 5.75 4.60 4.85 4.99
TSB Bank 5.80 ▲4.55 4.69 4.99
TSB Special - ▲4.05 4.19 4.49
Wairarapa Building Society 5.70 4.85 4.99 -
Westpac 5.95 4.69 4.79 5.19
Westpac - Offset 5.95 - - -
Westpac Special - 4.15 4.29 4.59
Median 5.89 4.55 4.69 4.79

Last updated: 17 December 2018 9:03am

News Quiz

The maximum remuneration model for Australian life insurance advisers is to be set at what?

Upfront 40% + trail 20%

Upfront 50% + trail 10%

Upfront 50% + trail 20%

Upfront 60% + trail 10%

Upfront 60% + trail 20%

MORE QUIZZES »

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com