The S&P/NZX 50 Index fell 35.74 points, or 0.3 percent, to 12,732.78. Within the index, 23 stocks rose, 23 fell and four were unchanged. Turnover was $186.9 million.
A2 Milk Company declined 3.6 percent to $14.21 today, after a late surge in the NZX trading session yesterday saw the stock close higher in New Zealand than across the Tasman.
Australia’s tense relationship with China, which has imposed a number of barriers and tariffs on exports, is also weighing on investor sentiment as the company is heavily exposed to China.
The dual-listed stock fell sharply today as it caught up with its foreign exempt listing on the ASX, said Grant Williamson, director at Hamilton Hindin Greene.
“On the match yesterday, it did get bought up a wee bit, so it actually closed at quite a difference,” he said. “In Australia it is down 1.2 percent today, so it is really just playing catch up to that price today.”
Sky Network Television shares took a tumble after chief executive Martin Stewart said he was leaving the company to return to Europe after just 21 months in the role.
His departure leaves the pay-TV operator in the early stages of its turnaround plan as the ailing company adapts to the digital environment. Investors sold the stock, pushing the price down 3.6 percent to 16.2 cents.
“The market doesn’t like this uncertainty of having to go out and find a new CEO, and you do often see a little bit of selling as some investors think there could be reasons behind the resignation,” Williamson said.
On the other side of the board, Pushpay shares jumped 6.2 percent to $1.88 after completing its four-for-one share split. In absence of other news, it appears the artificially low sticker price prompted the sudden surge.
Williamson said a lower price can create temporary buying interest, although ultimately the price will settle on fundamentals.
“A share split shouldn’t change the value of a company, but in the eyes of some investors it is more attractive to be buying a lower price stock,” he said.
Some property stocks saw gains after a string of successful October/November earnings results. Kiwi Property Group rose 2.1 percent to $1.205, Argosy Property climbed 1.7 percent to $1.515, and Fletcher Building was up 2.5 percent at $6.15.
Vista Group International’s executive chair Kirk Senior will step down at the end of the year, replaced by independent board member Susan Peterson. Shares were unchanged at $1.75.
The kiwi dollar continued its steady march upwards, trading at 70.34 US cents at 5pm in Wellington, up from 70.13 cents yesterday.
Weaker economic data released in America overnight supported the greenback, pulling the kiwi back from a recent high of 70.50 US cents at one point during trading.
ASB economist Mike Jones noted a technical indicator was showing the currency had been overbought and it may fall from these highs.
The trade-weighted index was at 74.19 at 5pm, from 73.94 yesterday. The kiwi traded at 95.48 Australian cents from 95.16 cents, 73.45 yen from 72.89 yen, 58.81 euro cents from 58.81 cents, 52.65 British pence from 52.45 pence, and 4.6265 Chinese yuan from 4.6135 yuan.
Source: goodreturns.co.nz
