MARKET WRAP: NZ shares fall as Z Energy revises guidance

New Zealand shares continued their downward trend today, despite a strong trading day for retailers Hallenstein Glasson and Kathmandu.

The S&P NZX 50 index was down 32.79 points to 8,946.10, on turnover of $131 million.

Fat Prophets head of research Greg Smith says leading the decline on the New Zealand market was Z Energy.

“With that petrol tax in Auckland there might be a little bit more pain coming there as well,” Mr Smith says.

Earlier today the company announced profits will be impacted by supply chain disruption and high petrol prices. Z shares fell 2.67% to $7.30.

Heartland Bank shares fell 1c to $1.71. Mr Smith says investors have “fallen out of love” with some financial stocks.

“Investors are being quite choosy. Some of the regionals have been more out of favour, whereas the blue chips, or dual listed [banks] like ANZ are doing quite well.”

Clothing retailers had a strong day, with Hallenstein Glasson shares edging closer to the $5.05 high it had in March. On Wednesday its shares gained 1.84% to $4.97.

Kathmandu shares also edged up 3c to $3.10. Mr Smith says chief executive Xavier Simonet has set the company on the right track.

“The consumer space is highly competitive and it’s probably getting increasingly more so with online disruption [but] if you’ve got a good quality brand and good positioning you can still do pretty well.”

New Zealand King Salmon shares rose 2.26% to $2.72.

Last month the company indicated that earnings before interest, tax, depreciation and amortisation (ebitda) for the 12 months to June 30 2018, is likely to be at the upper end or slightly above the guidance range of $24.5m to $26m previously provided to the market.

It expects ebitda for the 2019 financial year to be between $25m and $28.5m.

Port of Tauranga shares rose 1.4% to $5.07. Mr Smith says the company’s progress has been reflected in a strong run in the share price over the past year (up 12.19%). However, he says the valuation might be a “bit ahead of itself.”

Traded dairy products fell 1.7% overnight but rose in the biggest category, whole milk powder, in Fonterra's latest Global Dairy Trade auction. The price of whole milk powder jumped 1.5% to $US2973 a tonne, after slumping 7.5% in the previous auction.

However, that didn’t spur on A2 Milk’s share price, which dropped 9c to $11.01. Synlait Milk shares also fell 3c to $10.85.

Steel & Tube’s positive trading day yesterday might have been short-lived as its shares fell 2.68% to $1.45. The stock has been in a downward spiral after last month’s announcement it expects impairments of up to $54m.