tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Wednesday, December 4th, 9:26AM

Investments

rss
The Markets

Weak energy companies drag NZ sharemarket lower

Weakness in the big power companies helped drive the sharemarket lower while investors took to the sidelines in the leadup to the release of key United States labour data for September.

Friday, October 6th 2023, 6:33PM

by BusinessDesk

The S&P/NZX50 index ended down 22.07 points, or 0.2% at 11,287.03 – well off its low for the day but still failing to build on Thursday’s 74-point rally.

Turnover was very light at $65.4 million, and there were 58 gains and 68 falls on the main board.

Harbour Asset Management portfolio manager Shane Solly said the market over the week had been on the receiving end of “choppy” data out of the US, which had made for volatile trading.

 “Some data supports an ‘on hold’ stance from the Fed, while others have backed the case for rate hikes,” he said. “For the markets, it’s very much the old adage: No fun until the Fed is done.

“Until central bank rates have peaked, the capital markets are going to be choppy, and people have been quite wary."

The Fed’s next decision is due in early November.

Among power companies, Contact Energy fell 9 cents to $7.98 – a five-month low – while Meridian dropped 6.5 cents to $5.17.

Contact has had a run of bad news in recent weeks. First, it announced that one of its fast-start gas peakers would be out of action for about 18 months.

Contact then said the start-up of its Tauhara geothermal plant had been delayed by three months to the March 2024 quarter due to commissioning issues.

In addition, Solly said the power sector had been under pressure.

“There is a bit of speculation out there as to whether wholesale prices will hold as well as they have, given the increase in electricity generation that is coming online and as we face the possibility of lower demand resulting from a softening economy,” Solly said.

Some retirement village stocks were also weak.

Market leader Ryman fell by 5 cents to $6.04 while Summerset lost 4 cents to $9.71, despite Auckland’s house prices showing signs of recovery after a one-and-a-half-year slump.

The CoreLogic house price index published this week showed a 0.4% increase in Auckland property values in September – the first growth since March 2022.

Retirement village stocks have been under downward pressure as the sector normally has close ties with house price trends.

Vista Group, which specialises in providing software solutions for the cinema industry, gained 1 cent to $1.43 but is still down by 11.7% over the last 12 months.

The tech company has been a beneficiary of the “Barbenheimer” effect – blockbusters Barbie and Oppenheimer, but box office success has so far eluded its share price.

Port of Tauranga dropped by 3 cents to $5.79 while steel distributor Vulcan recovered from early weakness to end steady at $8.25.

Briscoe Group continued to feel the impact of a depressed retail sector, falling 6 cents to $4.51.

On the plus side, Skellerup gained 5 cents to $4.80, and kiwifruit company Seeka gained 11 cents to $2.51.

Air NZ, which announced that it had extended its covid-19 credit expiry by two years, ended steady at 72 cents.

Solly said the airline’s decision highlighted that it was in a “reasonable” financial state.

Under pressure stock Synlait gained 2 cents to $1.39 while its 20% owner, a2 Milk, fell 9 cents to $4.41.

Solly said a2 Milk’s fall looked to be on the back of talk that the stock may be about to fall out of a major international share index.

Looking to next week, Summerset is due to issue a sales update, and some NZ companies will be making presentations at a Citibank investment conference in Sydney, which may yield earnings updates.

Tags: Market Close

« NZ sharemarket rises US Treasury yields dropNZ market in the red as election countdown begins »

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
  • Partners kills its matrix
    “@Backstage, thanks. I agree there is no relationship to CoFI, though, from a service perspective, I have two other providers...”
    2 hours ago by JPHale
  • Partners kills its matrix
    “Partners Life has decided to stop using its COM for advisers as it believes the system may breach the CoFI regulations which...”
    20 hours ago by Amused
  • Partners kills its matrix
    “Insurance companies should stick to their lane. They are not advisers and even those that employ advisers should not be crossing...”
    23 hours ago by Tash
  • [GRTV] The nitty gritty of Smart’s ETFs
    “Advisors should consider all gateways into investment markets including cheaply priced ETFs to provide access to low priced...”
    1 day ago by Pragmatic
  • DRS member or not - client care remains advisers’ responsibility
    “FAPs are members of DRS too. Substitute “adviser” for “FAP” and the story is actually a lot more accurate. If...”
    2 days ago by Aggressively_passive
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
AIA - Back My Build ▼4.94 - - -
AIA - Go Home Loans ▼7.49 ▼5.79 ▼5.49 ▼5.59
ANZ ▼7.39 ▼6.39 ▼6.19 ▼6.19
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - ▼5.79 ▼5.59 ▼5.59
ASB Bank ▼7.39 ▼5.79 ▼5.49 ▼5.59
ASB Better Homes Top Up - - - 1.00
Avanti Finance ▼7.90 - - -
Basecorp Finance 9.60 - - -
BNZ - Classic - 5.99 5.69 5.69
Lender Flt 1yr 2yr 3yr
BNZ - Mortgage One ▼7.54 - - -
BNZ - Rapid Repay ▼7.54 - - -
BNZ - Std ▼7.44 ▼5.79 ▼5.59 5.69
BNZ - TotalMoney ▼7.54 - - -
CFML 321 Loans 6.20 - - -
CFML Home Loans 6.45 - - -
CFML Prime Loans 8.25 - - -
CFML Standard Loans 9.20 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - ▼5.69 - -
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Owner Occ ▼6.95 ▼5.79 ▼5.59 5.69
Co-operative Bank - Standard ▼6.95 ▼6.29 ▼6.09 6.19
Credit Union Auckland 7.70 - - -
First Credit Union Special - ▼5.99 ▼5.89 -
First Credit Union Standard ▼7.99 ▼6.69 ▼6.39 -
Heartland Bank - Online ▼6.99 5.65 5.55 5.55
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.60 ▼6.65 6.40 -
ICBC 7.49 ▼5.79 ▼5.59 5.59
Kainga Ora 8.39 7.05 6.59 6.49
Kainga Ora - First Home Buyer Special - - - -
Lender Flt 1yr 2yr 3yr
Kiwibank ▼7.25 6.89 6.59 6.49
Kiwibank - Offset ▼7.25 - - -
Kiwibank Special ▼7.25 5.99 5.69 5.69
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society ▼7.94 5.95 6.09 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
SBS Bank ▼7.49 6.95 6.29 6.29
SBS Bank Special - 6.15 5.69 5.69
SBS Construction lending for FHB - - - -
Lender Flt 1yr 2yr 3yr
SBS FirstHome Combo ▼4.94 5.15 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.75 - - -
TSB Bank ▼8.19 6.49 6.49 6.49
TSB Special ▼7.39 5.69 5.69 5.69
Unity 7.64 5.99 5.69 -
Unity First Home Buyer special - 5.49 - -
Wairarapa Building Society 8.10 6.05 5.79 -
Westpac ▼7.39 ▼6.39 ▼6.09 ▼6.19
Westpac Choices Everyday ▼7.49 - - -
Westpac Offset ▼7.39 - - -
Lender Flt 1yr 2yr 3yr
Westpac Special - ▼5.79 ▼5.49 ▼5.59
Median 7.49 5.99 5.79 5.69

Last updated: 3 December 2024 9:25am

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