MARKET CLOSE: NZ shares mixed, Spark NZ drops while Kiwi Property, ANZ, Westpac gain

Wednesday 13th July 2016

New Zealand shares were mixed as investors moved towards cyclical stocks, with Spark New Zealand down while property vehicles and banks gained.

The S&P/NZX 50 Index dropped 0.2 percent, or 15.2 points, to 7,064.31. Within the index, 30 stocks rose, 17 fell and four were unchanged. Turnover was $167.2 million.

"Across the region, there's a continued shift from defensive to more cyclical stocks - that's being driven by bond yields rising somewhat in the US market, and Japan looking to take ever-more aggressive action on the fiscal front," said Matt Goodson, managing director at Salt Funds Management.

Spark New Zealand led the index lower, down 3.7 percent to $3.68.

"Spark had a meteoric rise as people were chasing yield, all of a sudden there's been a rotation," Goodson said, although he cautioned that the volumes on today's downward shift were very light given it is school holidays in Australia and New Zealand.

Mighty River Power fell 2.6 percent to $3.01, Tower dropped 1.9 percent to $1.32, and Genesis Energy declined 1.6 percent to $2.105.

Kathmandu Holdings gained the most, up 3.6 percent to $1.75. It's risen 32 percent since raising its annual earnings forecast at the end of June.

"There had been some fears in that name as it had been quite a warm early winter across Australia and NZ, but they appear to have successfully navigated through that," Goodson said.

Kiwi Property Group gained 2.3 percent to $1.54 and Vital Healthcare Property Trust rose 1.9 percent to $2.195.

Investore Property, the Stride Property offshoot, advanced 1.2 percent to $1.63. The stock climbed yesterday after it was added to the NZX at $1.49. Stride Property rose 0.5 percent to $1.99.

"There appear to be some investors who are looking at the very long term of Investore's leases, and are happy to put them in the bottom drawer," Goodson said.

The banks continued to rebound today. Heartland Bank gained 1.6 percent to $1.27, Australia and New Zealand Banking Group rose 1.2 percent to $25.70 and Westpac Banking Corp advanced 1 percent to $31.

"The banks have made quite a recovery, they're hard hit by lower interest rates affecting profitability but showing modest signs of respite there," Goodson said.

Outside the main index, Moa Group gained 13.5 percent to 84 cents. Its executive director David Poole, who heads up the brewer's Australian sales team, has been buying shares on market in the company's recent share rally which prompted a 'please explain' from the stock market operator today. The shares have jumped as much as 48 percent since June 28.

Pushpay Holdings gained 7.6 percent to $2.41. The company, whose mobile payment app allows churches to raise money from parishioners, lifted annualised committed monthly revenue (ACMR) to US$27.3 million (NZ$38.77 million) over the quarter to June 30, up nearly 40 percent on the previous quarter.

BusinessDesk.co.nz

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