by BusinessDesk
The kiwi dollar fell to 70.94 US cents at 5pm in Wellington from 71.40 cents on Friday in New York and 71.30 cents last week.
“The markets have been unsettled and this dose of risk-off is covid-related more than anything else,” said Mark Johnson, a private client adviser with OMF.
The greenback was buoyed by US legislators reaching a deal on a US$900 billion covid stimulus bill. The trade-weighted index’s decline was more modest, falling to 74.02 from 74.19 last week.
Johnson said currency market trading volumes are getting lighter, which will add more volatility for the rest of the year.
That downbeat tone carried through into equity markets, with NZ joining the selloff across most Asian bourses.
The S&P/NZX 50 Index declined 74.26 points, or 0.6 percent, to 12,607.74. Within the index, 25 stocks fell, 20 rose, and five were unchanged. Turnover was $174.7 million.
Fisher & Paykel Healthcare, which is typically a beneficiary of a weaker currency and covid resurgence, led the local market lower, falling 4.3 percent to $32.75.
Grant Davies, an investment adviser at Hamilton Hindin Greene, said last week’s warning from A2 Milk about supply chain disruptions rippled through to other exporters, despite the concern being specific to the milk marketing company.
“Exporters are cautious given the A2 downgrade last week,” he said.
A2 Milk declined 0.6 percent to $10.94, adding to Friday’s 22.1 percent slump after it warned revenue would fall by about a fifth.
Synlait Milk, which counts A2 as its biggest customer, today said its profit may halve as a result of A2’s downgrade. Still, the stock was unchanged from Friday after a sell-off earlier in the day, closing at $4.85.
Davies said the covid resurgence and outbreak in New South Wales weighed on travel and tourism companies, with the prospect of a trans-Tasman bubble being pushed back further.
Air New Zealand fell 1.7 percent to $1.77, SkyCity Entertainment Group declined 2.1 percent to $3.21, and Auckland International Airport slipped 0.2 percent to $7.74.
Meridian Energy fell 1.1 percent to $6.51 ahead of tomorrow’s decision by the Electricity Authority on whether the power company’s spilling of water last year was an undesirable trading situation, and what magnitude the penalty it hands out might be.
Other power companies were stronger. Mercury NZ rose 2.3 percent to $6.06, Genesis Energy was up 2.8 percent at $3.50, Trustpower increased 2.5 percent to $7.70 and Contact Energy climbed 3.8 percent to $8.30.
Pacific Edge continued its ascent, rising 5.6 percent to $1.14 in the day’s strongest showing on the benchmark index. The bladder cancer test maker has been on a tear since securing large commercial contracts in the US.
Sanford slipped 0.4 percent to $4.90 after it named Farmlands Cooperative head Peter Reidie as its incoming chief executive, some time next year.
NZX rose 1 percent to $1.98 after saying it will probably hike prices to help cover the cost of extra cyber security.
The stock market operator also benefited from NZ Rural Land Co joining the bourse. The rural land investor closed at $1.25, unchanged from its initial public offering price.
Allied Farmers, which owns half of NZ Rural Land’s manager, rose 1.5 percent to 67 cents.
The Warehouse rose 1.2 percent to $2.55 after saying first-quarter sales rose 6.3 percent and gross margin improved 170 basis points. The retailer said it will repay the wage subsidy.
| « Shares plummet as A2 shocks market | NZ shares outperform Asia as blue chips bounce back » |
Special Offers
No comments yet
Sign In to add your comment
© Copyright 1997-2024 Tarawera Publishing Ltd. All Rights Reserved