MARKET CLOSE: NZ shares dip in holiday trading; Ryman, Kathmandu fall while Sky TV, Kiwi Property gain

Wednesday 28th December 2016

New Zealand shares edged lower in light holiday trading, led by Ryman Healthcare and Kathmandu Holdings, while yield stocks Sky Network Television and Kiwi Property Group gained.

The S&P/NZX 50 Index dipped 1.21 points, or 0.02 percent, to 6,875.78. Within the index, 23 stocks fell, 21 rose and six were unchanged. Turnover was $59.3 million.

"We've had another really massive year - the market just wants to grind into a positive outcome - we're up 8.7 percent year to date and there was a bit of a positive lead out of markets that have been open over shortened trading, the US was a bit stronger," Shane Solly, director, portfolio manager & research analyst at Harbour Asset Management, said. "Volumes are extremely thin, markets are driven by by-appointment transactions so transactions that have gone on today aren't indicative of where markets really are."

Retirement village operator and developer Ryman led the index lower, down 2.3 percent to $8.10, while rivals Metlifecare rose 2.3 percent to $5.42 and Summerset advanced 0.4 percent to $4.57.

"Metlifecare and Summerset have had a bit of a bounce after being under some real selling pressure," Solly said. "A slowing in the rate of growth in the New Zealand residential market's having some impact on retirement village operators, and the operators have certainly positioned themselves carefully so they're still in a position to generate reasonably helpful earnings."

Outdoor equipment chain Kathmandu fell 2.1 percent to $1.86.

Auckland International Airport dropped 2 percent to $6.53. Solly said the stock was giving back some gains after a strong month, with positive operating statistics earlier in the month.

Trustpower was the best performer on the index, up 3.3 percent to $4.75, while Sky Network Television rose 2.7 percent to $4.50 and Kiwi Property gained 1.5 percent to $1.375. Air New Zealand gained 0.5 percent to $2.12.

"There's definitely a bit of yield buying from overseas markets - Sky TV, Air New Zealand, Kiwi Property - those sorts of names that tend to have a relatively high market cap and a good dividend yield, but on tiny volumes so it's difficult to read too much into that," Solly said.

Outside the benchmark index, Pumpkin Patch owes $59.5 million to its bank ANZ Bank New Zealand and at least $6.6 million to other creditors, receivers KordaMentha said in their first report on the failed children's clothing retailer. The company, which was tipped into receivership by its lenders and appointed voluntary administrators in October, has $17.6 million in assets, with $13.5 million of that from investments, and $3 million in fixed assets relating to its head office and distribution centre in East Tamaki, Auckland. Trading in its shares has been suspended at 6 cents since October.

Intueri Education Group slumped 23 percent to 3.1 cents. The group's Australian Conwal & Associates unit has been rejected from provisional entry to the VET student loan scheme transition period, a week after having its application for a hike in funding turned down. The NZX-listed company's shares have plunged 94 percent so far this year.

(BusinessDesk)

BusinessDesk.co.nz

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