NZ sharemarket down after yesterday's gain
An uncertain New Zealand sharemarket was again lower, giving up well-earned gains from the day before, but there was some bargain hunting in cyclical retail stocks.
Tuesday, April 23rd 2024, 6:32PM
by BusinessDesk
The S&P/NZX 50 Index trod softly and closed at 11,803.28, down 49.52 points or 0.42% after previously rising 0.48%.
There were 74 gainers and 61 decliners on the main board, with 29.19 million shares worth $95.67m changing hands.
Paul Robertshawe, chief investment officer with Octagon Asset Management, said the market was operating on heightened uncertainty with recent economic news supporting a weaker outlook.
“How long this will last, who knows. The latest Centrix data shows a few thousand more people in debt, and I read that 18% of disposable income is now going into mortgages,” he said.
“People are watching their pennies, and the market is fighting for discretionary spending. Three retailers are doing well today, showing some cyclical stocks are attractively priced.”
Robertshawe said the Air NZ earnings downgrade won’t be the last for cyclical companies – “we have known this” – and it should bring forward an easing in monetary policy.
The major US indices, more settled as the Middle East tension eased, were back in business, with the Dow Jones Industrial Average up 0.67% to 38,239.98 points, the S&P 500 increasing 0.87% to 5,010.6, and the Nasdaq Composite rising 1.11% to 15.451.31.
All eyes are on electric vehicle maker Tesla, which is expected to report a 40% fall in operating profit and its first quarterly revenue decline in four years. Tesla has cut vehicle prices globally on slowing demand, and its share price fell 3.4% to a 15-month low of US$142.05 (NZ$240.21).
Across the Tasman, the S&P/ASX 200 Index was up 0.35% to 7676.2 points at 6pm NZ time.
Local market
At home, manuka honey retailer Comvita increased 4c or 1.97% to $2.07; jeweller Michael Hill gained 2c or 2.86% to 72c after rising 4.48% the day before. KMD Brands (formerly Kathmandu) was up 1c or 1.85% to 55c.
Ryman Healthcare was down 15c or 3.42% to $4.23. Robertshawe said there was a delayed reaction following Ryman’s management changes.
Vulcan Steel fell 46c or 5.48% to $7.94 after two brokers downgraded the stock on earnings risk.
Auckland International Airport declined 18c or 2.26% to $7.79; Freightways was down 24c or 2.75% to $8.50; Argosy Property shed 3.5c or 3.06% to $1.11; Serko decreased 8c or 2.35% to $3.33; and Oceania Healthcare was down 2c or 3.28% to 59c.
Wine exporter Delegat Group declined 20c or 2.88% to $6.75; The Warehouse was down 7c or 4.9% to $1.36; Smartpay shed 2.5c or 1.79% to $1.37; NZX eased 2c or 1.74% to $1.13; ikeGPS decreased 2c or 4.434% to 43c; and 2 Cheap Cars was down 3c or 3.66% to 79c.
Fisher and Paykel Healthcare was up 10c to $26.54; a2 Milk increased 9c to $6.36; Skellerup gained 10c or 2.3% to $4.45; Gentrack added 12c to $8.12; Eroad was up 4c or 4.71% to 89c; and Third Age Health improved 3c or 1.8% to $1.70.
Sky TV, up 1c to $2.85, has expanded its content agreement with BBC Studios, with British programmes being screened across Sky Box, Sky Pod, streaming service Neon and free-to-access Sky Open.
AoFrio (formerly Wellington Drive Technologies) rose 0.008c or 15.38% to 6c after reporting a 13% increase in revenue to $16.6m for the first quarter compared with the previous corresponding period.
Internet of Things revenue was $9.9m (2023 $9.9m), and sales of motor products were $6.7m (2023 $5.3m). Operating earnings (Ebitda) was $200,000 compared with the previous loss of $400,000, and AoFrio maintained its full-year revenue guidance of $70m-$80m, 13% ahead of the previous year.
TradeWindow, up 0.001c to 20c, has completed its $2.2m capital raise and secured a new institutional investor that took 25% of the share placement.
Blackwell Global, unchanged at 0.003c, is changing its name to RTO Limited on May 1 following the resignation of director Michael Chai at the request of the board's independent members.
Blackwell said it wished to separate the activities of Chai, a director of the company’s major shareholder.
| « NZ sharemarket bounces back 0.5% on Middle East hopes | NZ sharemarket celebrates highest single-day rise in over five months » |
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