Australian consumer sentiment, China drag market down

Weaker-than-expected consumer sentiment figures across the Tasman and China’s continuing zero-covid policy dragged New Zealand’s benchmark index lower today.

Tuesday, November 8th 2022, 6:03PM

by BusinessDesk

The S&P/NZX 50 index decreased 138.45 points, or 1.23%, to 11,290.34 points.

Across the main board, 44 shares rose and 83 fell. Turnover was $94.6 million.

Craigs Investment Partners adviser Peter McIntyre said the top 50 was being dragged lower by a weaker day’s trading on some of the index’s top stocks.

That was because of weaker consumer sentiment figures in Australia and China continuing its zero-covid policy, despite speculation it could end.

Fletcher Building was one of the biggest decliners in the top 50, down 3.7% to $4.93.

McIntyre put that down to a big decline in Fletcher's Australia counterpart, James Hardie Industries, after it cut its income guidance.

At 5.30pm, the stock was the ASX200’s biggest decliner, down just over 13% to $29.

The weaker-than-expected consumer sentiment figures across the Tasman had an impact on shares like Auckland Airport.

Westpac’s index of consumer sentiment in Australia released today dropped 6.9% to 78 – the lowest level since April 2020.

“It could see a few Australians put their wallets away and tighten up on their discretionary spending,” McIntyre said.

The airport share price ended the day down 2.7%, to $7.45. Air New Zealand was also down 0.6%, to 81c.

Other top 50 stocks in decline were Freightways, down 3.7% to $9.75, and Fisher and Paykel Healthcare, down 0.9% to $19.49.

Property stocks were also weaker. Investore Property dropped 5.2% to $1.45, Precinct Properties was down 3.2% to $1.20, and Stride Property dropped 1.8% to $1.58.

Energy stocks were also down. Contact Energy dropped 2.7% to $7.32 and Genesis Energy was down 2.1% to $2.75.

On the flip side, A2 Milk was the top 50’s biggest winner of the day, up 4.1% to $6.24.

McIntyre said that boost was helped by the company’s $150 million share buyback.

“It gives the market confidence the board feels the current share price is undervalued,” he said.

Other big increases included Eroad, which continued its rally after narrowing revenue guidance as it confirmed two new contracts. It ended the day up 5% at $1.47.

Vista Group International increased 2.6% to $1.54.

Accordant Group was up 4.2% to $1.95. Allied Farmers also rose in price, up 3.95% to 79c.

Cannabis company Cannasouth was up 3.3% to 31c.

The NZ dollar traded at 59.44 US cents at 3pm in Wellington, up from 58.91 cents yesterday, with the trade-weighted index at up to 70.85c from 70.62c on Monday.

Tags: Market Close