Sharechat Logo

MARKET CLOSE: NZ shares rise as Restaurant Brands, A2 gain; Xero, Scales drop

Tuesday 17th October 2017

Text too small?

New Zealand shares rose, led by Restaurant Brands and A2 Milk while Xero and Scales Corp fell, with investors still uncertain about the make-up of the next government. 

The S&P/NZX50 Index gained 21.32 points, or 0.3 percent, to 8,112.05. Within the index, 25 stocks rose, 17 fell and eight were unchanged. Turnover was $149 million.

Grant Williamson, director at Hamilton Hindin Greene, said the market was doing well in line with offshore markets, though it's still waiting for NZ First leader Winston Peters to decide which party he will form the next governing coalition with. Late today, Peters said his talks with his party's board had concluded and he will now go back to the leaders of National and Labour. He said he believes there will be a decision by the end of the week, but that is dependent on people other than him.

"The market is really still in limbo, waiting for Winston," Williamson said. "If it went through the end of this week investors wouldn't be happy, that would create uncertainty. Whether he goes one way or another, I don't think the market will be concerned."

Restaurant Brands led the index higher, up 2.6 percent to $7.07, while A2 Milk Co rose 2.6 percent to $7.90 and Synlait Milk advanced 2.4 percent to $7.62.

Ebos Group advanced 0.3 percent to $17.45. The company, which posted a record profit in 2017 driven by acquisitions and sales growth, says earnings will rise about 10 percent in the current year after a strong first quarter for its healthcare and animal products divisions.

Chief executive Patrick Davies told shareholders at their annual meeting in Christchurch that the company "made a positive start to the first quarter of the 2018 financial year, with growth from both our healthcare and animal care segments."

"It's really already priced for double-digit growth anyway," Williamson said.

Infratil edged up 0.2 percent to $3.14. The Wellington-based infrastructure and utility investor, which is one of the biggest issuers of NZDX-listed debt securities, says it won't offer holders of its November 2017 bonds an option to reinvest because it has ample funds and untapped bank facilities. 

Xero was the worst performer, down 5.2 percent to $33.60. Scales Corp dropped 2.1 percent to $3.78 and Trade Me Group fell 1.6 percent to $4.39.

Outside the benchmark index, GeoOp was unchanged at 44 cents. It has quit plans for an initial public offering and Australian listing after reaching an impasse with the Australian Securities Exchange, and will instead stay on the NZAX and rely on cornerstone shareholder North Ridge Partners for funding. 

(BusinessDesk)



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
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:

NZ dollar becalmed on US-China trade/politics nexus
Govt to pull Infrastructure Commission into Auckland port imbroglio
Wind to displace diesel for Stewart Island power
Eroad's five year target: doubling unit sales
Blinky boxes and gobbledegook: tips for choosing a cyber-security vendor
Govt support for NZME/Stuff merger difficult, not impossible, says Jarden
NZ dollar stalled; US-China trade signals remain mixed
Ryman warns NZ, Australia to take population ageing more seriously
MARKET CLOSE: NZ shares fall as US-China trade concerns weigh on markets; Ryman slips
NZ dollar stalled; US-China trade deal may be postponed

IRG See IRG research reports