Eroad leads market lower as rising bond yields weigh
The S&P/NZX 50 Index fell 33.46 points, or 0.3%, to 10,960.62, extending its decline this year. Turnover was $128.8 million across the main board, with 87 stocks falling and 47 rising out of the 185 traded on the exchange.
Eroad fell 6% to 63 cents, leading the benchmark index lower, with 240,000 shares changing hands.
The price is still below the 70 cents in the recent $50m capital raising, which was poorly supported and needed the underwriters to make up the shortfall, and well short of the $1.30 takeover offer by Canada’s Constellation Software made earlier this year.
Peter McIntyre, an investment adviser at Craigs Investment Partners, said Eroad had fallen yesterday in Australian trading, and there was probably some degree of catch-up in today’s local session, given the yield on US 10-year Treasuries hit 5%, the highest level in 16 years.
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