MARKET WRAP: NZ shares slip after strong run

The New Zealand market was flat today ahead of several key data points later in the week.

The S&P NZX 50 index was down 1.52 points to 8974.23, on turnover of $129 million.

Harbour Asset Management analyst Shane Solly says trading volumes were relatively weak, with investors pausing after a strong run in the New Zealand market, which is up 3.66% this month.

“Investors may also be a little wary of what lies ahead in the widening trade dispute between China and the US, and OPEC production discussions later this week,” Mr Solly says.

Today the NZX placed Pushpay Holdings in a trading halt on pending the release of an announcement to be made by the company tomorrow.

Fisher & Paykel Healthcare had another strong trading day, its shares gained 0.33% to $15 after it announced U.S.-based investment management company Capital Group now controls a substantial, 5.13% stake in the company. Last week its shares hit an all-time high at $15.06.

Fletcher Building shares were up 1.18% to $6.88 as investors consider what may be announced at its investor day in Sydney on Thursday.

“There’s a bit of expectation brewing regarding what happens with the restructuring parts of the business and potential for asset sales, in particular, Formica,” Mr Solly says.

Chorus shares rose 1.56% to $4.24. With long-term bond yields remaining relatively low, Chorus’s indicative 7% gross dividend yield continues to attract income-focused investors, Mr Solly says.

Mercury shares gained 3.29% to $3.45 after raising its earnings forecasts on improved hydropower generation last week. The company lifted its FY2018 EBITDAF guidance from $540 million to $555 million.

Pacific Edge recovered some lost ground after NZX controlled Superlife and Smartshares cut their substantial shareholdings in the company early in June. Its shares gained 8.89% to 25c.

Skellerup got a boost when it entered the S&P NZX 50 index recently, however today its shares fell 1.45% to $2.04.

Two of the markets star performers of late, A2 Milk and Auckland International Airport also slipped.

A2 shares fell 1.76% to 11.69 and Auckland International Airport shared fell 1.45% to $6.80.

Mr Solly says there are several key data points on the way with the Global Dairy Trade auction results and Mainfreight holding an analyst day on Wednesday.

 On Thursday New Zealand’s first-quarter GDP is out and Restaurant Brands, NZME and Z Energy will all hold annual meetings.