Fri. Nov 18th, 2022

Heavyweights Meridian Energy and Contact Energy pulled the New Zealand sharemarket down during a session that also featured a disappointing debut for My Food Bag.
The benchmark S&P/NZX50 Index ended the week down 0.36 per cent, or 44.25, at 12,180.25, following a 1 per cent dive on Thursday.
Shares in My Food Bag, the biggest IPO to hit the NZX in seven years, were offered to new investors for $1.85 each but failed to reach that offer price on Friday. They closed down 5.9 per cent at $1.74, hitting a low of $1.65 during the day, with $8.6 million worth of shares changing hands.
Stephen Bennie of Castle Point Funds called the debut disappointing, although not a disaster.
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Investors had been prepared to accept a price below the IPO, a sign that too many shares had been offered during the placement.
My Food Bag opened down 8 per cent, normally youd expect at least 10 per cent pickup, Bennie said.
Meridian and Contact pulled the NZ sharemarket down during a session that also featured a disappointing debut for My Food Bag.
Its on the wrong side of the ledger, not what the parties involved would be looking for.
Its against a backdrop of market wobbles – were not seeing markets collapse but theres a bit of red.
Hamilton Hindin Greene investment adviser Jeremy Sullivan said the broader market weakness continued to reflect investors reactions to rising bond yields.
The speed at which the yield on the benchmark United States bond has risen has forced investors to re-examine how they value stocks, bonds and other investments. The immediate reaction has been to sell them at lower prices.
Top stock Fisher & Paykel Healthcare rose 1.9 per cent to $28.55, but it was outmuscled by big declines in Meridian, down 6.4 per cent on heavy volume to $5.31, and Contact, down 4.1 per cent to $6.71.
Meridian in particular had become incredibly volatile, said Sullivan.
It shouldnt be its new normal, its a very large blue chip company with dependable earnings.
Its an arm-wrestle between active and passive investors.
Late last year and early this year, overseas investors jumped into the two renewable energy stocks thanks to their presence in overseas exchange traded funds (ETFs). However, they have been sold down ahead of adjustments to S&P’s benchmark clean energy index in April.
Among other blue chips, Auckland International Airport rose 1.5 per cent to $7.14, A2 Milk was up 1.2 per cent at $10.13, and Fletcher Building was down 1 per cent at $6.53.
Elsewhere, Australias benchmark S&P/ASX200 Index fell 0.7 per cent, or 49.9 points, to 6710.8.
On Wall Street, stocks fell sharply after US Federal Reserve Chair Jerome Powell failed to reassure investors that inflation and bold yields would stay under control when the pandemic ends and US economic activity rebounds.
The benchmark S&P 500 fell 1.3 per cent to 3768.47, its third straight loss. The Dow Jones Industrial Average lost 1.1 per cent to 30,924.14, and the Nasdaq composite dropped 2.1 per cent to 12,723.47
US Treasury yields jumped to more than 1.5 per cent after Powell spoke on Thursday (US time).
– With AP