Sharechat Logo

MARKET CLOSE: NZ shares snap six-day decline as retirement stocks claw back losses

Friday 12th April 2019

Text too small?

New Zealand shares snapped a six-day decline, with retirement stocks clawing back some of their recent losses since Summerset Group's observation that a slowing property market had dented unit sales. 

The S&P/NZX 50 Index advanced 58.64 points, or 0.6 percent, to 9,766.6. Within the index, 29 stocks rose, 15 fell, and six were unchanged. Turnover was $122.4 million. 

Summerset climbed 3.3 percent to $5.71. The retirement village operator fell to a 14-month low after it last week said slower Auckland and Christchurch property markets had contributed to a decline in first-quarter unit sales. 

That negative tone spilled over to other retirement village operators, and they also regained some of their recent losses. Metlifecare increased 2.7 percent to $4.59 and Ryman Healthcare edged up 0.1 percent to $11.51. Arvida Group was unchanged at $1.31. 

"There's been a bounceback in retirement names after a fairly heavy week following on from Summerset's update," said James Lindsay, a portfolio manager at Nikko Asset Management.

Aged-care operator Oceania Healthcare - which is outside the benchmark index - provided an update to investors on its development plans, which seeks to deliver an average of 250 new residences every year. The shares were unchanged at $1. 

Lindsay said Oceania operates a different model to the retirement village operators although it has some components linked to the property market. Today's update offered some relief to investors.

Meridian Energy rose 2.8 percent to $4.08 on a volume of 1.1 million shares after its monthly operating metrics showed favourable rainfall for the South Island hydro operators. Contact Energy rose 0.6 percent on a volume of 1.9 million shares, while Mercury NZ increased 0.4 percent to $3.90. 

Genesis Energy led the market higher, up 3.3 percent at $3.14. 

Spark New Zealand was the most traded stock on a volume of 3.7 million shares. It fell 0.4 percent to $3.56. Goodman Property Trust increased 0.6 percent to $1.715 on 2.5 million units, more than four times its 90-day average of 587,000 units. 

Among other stocks trading on volumes of more than a million shares, Air New Zealand edged up 0.4 percent to $2.82, and Argosy Property was unchanged at $1.27. 

Synlait Milk posted the biggest decline, down 1.7 percent at $10.41 on a volume of 233,000 shares, twice its three-monthly average of 112,000. 

Infratil fell 0.7 percent to $4.21. Wellington International Airport, which is 66 percent-owned by Infratil, today withdrew its consent application for a runway extension and said it will lodge a new application early next year. Of the airport's five listed bonds, only its 4 percent notes maturing in 2024 traded today, at a yield of 3.17 percent, up from 3.15 percent. 

NZX fell 1 percent to $1. The stock market operator today accredited BNP Paribas's Australian branch as a depository participant. Separately the bourse operator was recognised as a designated offshore securities market by the US Securities Exchange Commission. 

Sky Network Television fell 0.8 percent to a record $1.23. The pay-TV operator cut the price of its 'Fan Pass' streaming sports service. 


  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:

NZ dollar falls; coronavirus spreads to more countries
Looking to $2,000 gold price: Coronavirus is the straw that broke the camel’s back
Hong Kong Stock Exchange Turns From Tough Year to Trading Boom
Treasury 10-Year Yield Tumbles to Record Low on Haven Demand
U.S. Stocks Plunge, Bonds Surge After CDC Warning
26th February 2020 Morning Report
NZ dollar takes a breather, likely to fall further
Hong Kong Stocks Are Trading at Lowest Versus World Since 2004
Stocks Tumble, Havens Gain on Rising Virus Concern
25th February 2020 Morning Report

IRG See IRG research reports