Infratil was joined by the local software companies in pacing declines.
Taiwan Semiconductor Manufacturing Co technology.
New Zealand’s S&P/NZX 50 index fell as a globally souring sentiment on tech stocks weighed on Infratil and local software firms Serko, Vista Group International and Gentrack, with Asian technology companies on edge ahead of earnings from Taiwan Semiconductor Manufacturing Co.
Ryman Healthcare was among those on the red side of the ledger after the retirement village operator said December quarter sales of occupation rights to its units were relatively flat, while retaining its outlook for the June financial year.
Dual-listed lender ANZ Group Holdings and Westpac Banking Corp recovered some of yesterday’s losses after Citigroup analysts raised their target prices in a mixed day for the Australian banks as investors upped up their exposure to the mining sector amid the elevated prices for precious metals.
And used car firm 2 Cheap Cars neared a two-month high after a stronger-than-expected December period prompted the company to raise its earnings guidance.
The NZX50 fell 97.92 points, or 0.7%, to 13,659.79, with 28 stocks declining, 16 gaining, and six unchanged. Turnover across the main board was a relatively quiet $93.7 million, of which Fisher & Paykel Healthcare accounted for $12.7 million as it dropped 0.7% to $39.22.
Local tech companies paced the benchmark lower, following a soft lead on Wall Street where the likes of Amazon, Microsoft and Nvidia were sold off overnight as investors continue to exit the Magnificent 7 megacap stocks that have been driving US markets in recent years, and buying smaller firms.
Infratil was the biggest drag on the benchmark, with its CDC data centre business often seen tying it to the artificial intelligence boom. The infrastructure investor dropped 3.5% to $11.19.
“The AI stocks are off in the US markets and that’s flowed through to Infratil,” said Grant Davies, an investment adviser at Hamilton Hindin Greene.
Local software developers were also among decliners as cinema analytics firm Vista Group International led the NZX50 lower as it dropped 6.4% to $2.20, while online travel platform Serko sank 6.2% to $3.05.
Utilities software developer Gentrack declined 1.8% to $8.27.
Ryman Healthcare slipped 0.7% to $2.97 after the retirement village operator said sales of occupations rights were flat in the December period, although its occupancy rate nudged up to 96%.
Hamilton Hindin Greene’s Davies said Ryman was tracking okay: “It’s not shooting the lights out but it’s heading in the right direction.”
Summerset Group Holdings fell 2.6% to $12.18 while Oceania Healthcare declined 1.7% to 89.5 cents. Outside the benchmark index, Radius Residential Care advanced 1.3% to 39 cents.
Among other companies to decline, stock market operator NZX fell 4.1% to $1.523, Meridian Energy dropped 2% to $5.52 and KMD Brands slipped 1.8% to 27.5 cents.
Sanford posted the biggest gain on the day, up 3.5% at $7.50 as the kiwi dollar remained soft, support earnings derived overseas. The kiwi dollar traded at 57.35 US cents at 5pm in Auckland from 57.48 cents yesterday.
The yield on New Zealand’s 10-year government bonds dropped 7 basis points to 4.41% after the NZ Debt Management’s first auction of the year attracted four and five times the amount offered.
The dual-listed banks recovered some of yesterday’s losses after Citi analysts raised their target price on Westpac Banking Corp and raised ANZ Group Holdings to a ‘buy’ in a mixed day for the Australian lenders as a flight to BHP and other miners buoyed the S&P/ASX 200 index, which was up 0.3% in late trading.
ANZ gained 2.2% to $42.99 on the NZX, while Westpac was up 0.3% at $44.49.
Meanwhile, Turners Automotive Group gained 1.6% to $2.60, joining used car firm 2 Cheap Cars higher after the smaller firm raised its earnings guidance on stronger-than-expected trading in the December quarter. 2 Cheap Cars jumped 13% to 63 cents.
Channel Infrastructure increased 1% to $2.91 after saying throughput at the import terminal rose 3.9% in the December quarter, and included the highest jet fuel throughput since the March quarter of 2019. National carrier Air New Zealand fell 0.9% to 58.5 cents.
Spark New Zealand was the most heavily traded stock on the day with a volume of 1.2 million, increasing 1.3% to $2.35.
Outside the benchmark index, AFT Pharmaceuticals increased 0.3% to $3.60 after reaffirming it’s on track to deliver operating earnings of between $20 million and $24 million in the March year, while PaySauce was unchanged at 28 cents after the payroll software firm said annual recurring revenue grew 2% in the three months ended Dec 31 from a year earlier, as growing processing fees more than offset declines in interest income.
Reporting by Paul McBeth.
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