New Zealand shares fell today, but the market still managed to outperform the Australian market, which also slipped into the red, amid ongoing global trade tensions.
The NZX50 index was down 21.54 points, or 0.24%, to 9001.39, on turnover of $123 million while Australia's All Ordinaries Index was down more than twice as much.
Fat Prophets head of research Greg Smith says US-China trade issues “aren’t going away.”
“On days when Trump’s Tweets have been quiet, the markets haven’t paid a lot of attention, but then again when he’s been a bit more vocal there has been a reaction, particularly in Asia.”
On the New Zealand market, Metro Performance Glass shares gained 2.33%, or 2c, to 88c.
“It has had a pretty tough year,” Mr Smith says.
“It has had a very lackluster performance since that 2014 IPO at $1.70 (per share). Of course, we had the CEO step down, but the new management hasn’t provided the Midas touch investors have been looking for.”
Skellerup Holdings shares fell 2c to $1.92. The company today announced an investment in liquid silicon rubber. It will inject US$1.1 million for a 35% stake in privately owned US company Sim Lim Technic LLC.
While investors didn't take too kindly to the news, Mr Smith says the company has done "a good job of de-risking" and has been "repositioning away from resources into defensive industrial sectors".
Pyne Gould Corporation shares rose 3c to 30c.
The company today announced the settlement of the Cayman Islands proceedings between the Torchlight Fund LP (“Torchlight Fund”) and Aurora Funds Management, Crown Asset Management and the Accident Compensation Corporation.
“That will see PGC’s interests rise and retain 100% ownership of Torchlight GP Limited and that’s going to lead to an NTA uplift so investors [are] pretty excited about that,” Mr Smith says.
Serko shares fell 9c to $2.85.
Last month, the Auckland-based company listed on the ASX at $A2.60. The corporate travel booking software developer did a foreign exempt compliance listing and retains its primary listing on the NZX.
Mr Smith says all eyes are on the earnings season which continues in the US, but attention will soon shift New Zealand’s reporting season, which is just a month away.
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