Sharechat Logo

MARKET CLOSE: NZ shares mixed; Ryman, Metlifecare gain while Fletcher falls

Wednesday 9th May 2018

Text too small?

New Zealand shares were mixed in light trading ahead of next week's major index reweighting, with gains led by the retirement sector and A2 Milk Co, while Heartland Bank and Fletcher Building dropped.


The S&P/NZX50 Index rose 25.24 points, or 0.3 percent, to 8,619.83. Within the index, 20 stocks gained, 21 fell and nine were unchanged. Turnover was $110.5 million.


"These MSCI changes which get announced on the 14th are holding a spell over the market at the moment," said Peter McIntyre, investment adviser at Craigs Investment Partners. "It's a bit directionless in that period prior to reporting season, the market is trading up without a lot of volume running through. There's not a lot of volume in the stocks leading the gainers or decliners."


The retirement sector led gainers today, with Ryman Healthcare up 3.1 percent to $10.99, Metlifecare rising 1.9 percent to $5.91, and Summerset Group advanced 1.6 percent to $7.18.


"Those three have performed exceptionally well today, though a lot of them are trading on lightish volume," McIntyre said. "There's no real reason why they're trading up but we can potentially put it down to changes in the MSCI that might happen."


A2 Milk rose 1.1 percent to $12.89 and New Zealand Refining Co gained 0.8 percent to $2.41. 


Heartland Bank was the worst performer, down 1.7 percent to $1.75.


Fletcher Building dropped 1.2 percent to $6.45. The company completed the institutional component of its $750 million capital raise last month, generating gross proceeds of $515 million, and the retail component of Fletcher's capital raise opened on April 23 and closes on Friday.


"The bookbuild will be interesting for those entitlements that weren't taken up for Fletchers," McIntyre said. "It has probably surprised a few where it has been trading, that ex-entitlement price probably comes out around $6.15 so it has been trading above that. Obviously it has been getting good support via institutions wanting to top up, more on that value proposition for Fletchers."


Vector dipped 0.6 percent to $3.21. Chair Michael Stiassny says he won't seek re-election at this year's annual meeting because he no longer has the support of controlling shareholder Entrust Trustees, which owns 75.1 percent of Vector and represents its electricity network customers. 


Scales Corp gained 0.2 percent to $4.76. After the market closed, Scales announced it has agreed to sell its coldstorage businesses for $151.4 million to Emergent Cold, a global cold chain company that recently acquired the Swire coldstorage assets in Australia and Vietnam. The transaction is subject to Overseas Investment Office approval.



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

MYOB adds 57% more subscribers in 2018 but total online customers still lag Xero's
Investors fear chilling effect as former IRD boss opposes capital gains proposals
Stuff 1H earnings slide but Nine still optimistic of finding buyer
NZ Post achieves first-half revenue growth for the first time since 2015
TeamTalk affirms annual earnings guidance as rising costs dent first-half profit
Government to step up efforts as second Queensland fruit fly detected
Spark's Moutter bangs drum for 5G spectrum auction
F&P Healthcare and ResMed drop patent infringement disputes
NZ dollar dips after Fed minutes not as dovish as expected
February 21st Morning Report

IRG See IRG research reports