NZ sharemarket continues decline
The New Zealand sharemarket declined for the 13th time in 16 trading days, dragged down by heavyweights Fisher and Paykel Healthcare and Ebos Group.
Thursday, April 18th 2024, 6:32PM
by BusinessDesk
The S&P/NZX 50 Index fell at the opening after another weak day on Wall Street and was once again rescued with a rise in the end-of-day broker matching session. The index closed at 11,836.04, down 39.31 points or 0.33%, after reaching an intraday low of 11,730.98.
There were 66 gainers and 69 decliners on the main board, with 29.28 million shares worth $117.33m changing hands.
Paul Robertshawe, chief investment officer with Octagon Asset Management, said the market is adjusting to the (March quarter) consumers price index numbers and the disappointment that interest rate cuts may be pushed out past August.
“This means that companies, particularly those exposed to consumer spending, may have weaker earnings for a longer period, and there’s a rotation out of cyclical stocks. But it doesn’t feel like the market is in trouble,” he said.
In the United States, the technology-heavy Nasdaq Composite fell 1.15% to 15,683.37 points, with Nvidia declining 3.87% to US$840.35.
The S&P 500 dropped for the fourth successive day, down 0.58% to 5,022.21 points; and Dow Jones Industrial Average declined 0.12% to 37,753.31, its seventh fall in eight trading days.
At home, Fisher and Paykel Healthcare was down 24c to $26.54; Ebos declined 63c or 1.82% to $34; Freightways eased 13c to $8.65; and Mainfreight decreased 50c to $69.
Port of Tauranga reached a six-year low after declining 11c or 2.17% to $4.95. Vulcan Steel, a volatile cyclical stock, fell 25c or 2.82% to $8.60 on trade worth $12.82m.
In the energy sector, Meridian was up 8c to $5.84, and Contact was down 8c to $8.51.
Scott Technology declined 8c or 2.68% to $2.90; Tower gave up 1.5c or 1.8% to 81.5c; Heartland Group eased 2c or 1.85% to $1.06; Vista Group shed 6c or 3.14% to $1.85; and Eroad was down 3c or 3.41% to 85c.
Telco disappointed
Chorus was down 12.5c to $7.38 after the Commerce Commission reduced its fibre expenditure allowances for the next regulatory period from 2025 to the end of 2028. In its draft decision, the commission set operating expenditure at $691m and capital expenditure at $1.126 billion.
Chorus proposed operating expenditure of $840m and revised capital expenditure of $1.3b, down from $1.5b. Chorus told the market: “We acknowledge the commission’s acceptance of 87% of our amended capital expenditure proposal but are disappointed by the draft decision on operating expenditure.”
The telecommunications network provider is reviewing the draft decision and will make a submission identifying the likely consumer outcomes of the proposed reductions.
Oceania Healthcare rose 4c or 6.67% to 64c; Serko increased 12c or 3.57% to $3.48; Turners Automotive gained 12c or 2.67% to $4.61; Restaurant Brands collected 13c or 3.98% to $3.40; and Hallenstein Glasson was up 11c or 1.93% to $5.81.
PGG Wrightson gained 6c or 3.09 % to $2 after revising its operating earnings (Ebitda) to $43m from $50m for the year ending June.
The rural services company said trading conditions had deteriorated since releasing its first-half results – with drought in some parts of NZ, weak sheep meat demand from China, and farmers and orchardists were reducing debt and deferring spending.
NZX, up 2c or 1.79% to $1.14, told shareholders at the annual meeting that first-quarter revenue was up 14.8% to $28.8m and operating earnings increased 23.5% to $11.4m compared with the same period last year.
The market operator said it should comfortably deliver full-year earnings of $40m-$44.5m because of the business growth activities underway.
Pole monitoring software firm ikeGPS gained 2c or 4.65% to 45c after reporting that revenue for the year ending March fell 31% to $21.1m, with subscription revenue up 22% to $10.7m and transaction revenue down 61% to $7.3m.
The company told the market it closed $27m worth of contracts in the 2024 financial year, including 59 subscription customers in the United States. Subscription revenue is expected to grow 50% to $16m or more in the present financial year.
Transport and logistics software firm TradeWindow increased 1.6c or 8.47% to 20.5c after chief executive AJ Smith sent a company update to shareholders as it completes a $2.2m capital raise.
| « NZ sharemarket gains over 0.5% as inflation falls | NZ sharemarket down 1.13% for the week » |
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