MARKET CLOSE: NZ shares fall; Ryman leads decliners, F&P Appliances gain

By Jason Krupp

July 13 (BusinessDesk) - New Zealand shares fell for the seventh session, with Ryman Healthcare Ltd. leading decliners after Tainui Group Holdings sold its stake in the company to fund its property investments. Fisher & Paykel Appliances Holdings rose.

The NZX 50 Index fell 6.5 points, or 0.2%, to 3,423.83, its lowest level so far this month. Within the index, 20 stocks fell, 12 rose, and 18 were unchanged. Turnover was $179.5 million.

Ryman, the retirement village operator, fell 4% to $2.65 after Tainui, which represents the commercial interests of Waikato-Tainui Te Kauhanganui Inc., sold its 4.5% stake in the company for $58 million, netting a $21 million profit having bought the shares three years ago.

The proceeds of the Ryman sale, as well as $250 million debt facility, will be used to fund Tainui's growing investment exposure to the Base retail property development in Te Rapa and Auckland International Airport’s Novotel Hotel.

"The biggest crossing on the day was the Ryman sale, which was very well run," said Shane Solly, portfolio manager at Mint Asset Management. "It was very widely spread with the current price not a bad entry point for a company of Ryman's calibre."

Mainfreight Ltd., the trucking company which recently expanded into Europe, fell 2.5% to $10.12, after it went ex-dividend today. Any investors who join the shareholder roll today will not be eligible for the 11 cents a share payment, due on July 22.

New Zealand Refining Co., the country's only oil refinery, fell 2.5% to $3.55.

PGG Wrightson Ltd., the financial services company looking to sell its finance unit to Heartland New Zealand Ltd. for $100 million, fell 2.1% to 47 cents.

Heartland, the would-be bank, fell 1.5% to 66 cents.

Kiwi Income Property Trust, the country's biggest listed property investment vehicle, fell 1% to $1.03 after chairman Sean Wareing announced he would be retiring in August after seven years with the trust. He will be replaced by Independent director Mark Ford.

Export stocks received a shot in the arm today after a new survey conducted by
ExportNZ, a division of BusinessNZ, found that manufacturers were expecting orders to rise despite being challenged by the volatility of the New Zealand dollar.

Fisher & Paykel Appliances Holdings, the whiteware manufacturer, rose 2.5% to 61 cents, leading gainers on the exchange.

Nuplex Industries Ltd., the industrial chemicals and resins manufacturer, rose 1.1% to $2.89.

Fisher & Paykel Healthcare Corp., the maker of breathing masks and respirators, rose 0.8% to $2.66.

Shares in corporate governance software company Diligent Board Member Services Inc. surged 9.6% to $1.37 today after it reported a 91% jump in second quarter sales revenue to US$3.67 million.

That took the company's annualised licence fee income, or recurring income, to $US14.9 million. The latest quarter's growth beats the 70% first quarter sales growth.

Rakon Ltd., the maker of crystal timing components used in electronics, rose 2% to $1 after it announced the official opening of its factory in China's Chengdu province yesterday. The factory is a joint venture with leading quartz blank company Timemaker which holds 15% of the enterprise.

Contact Energy Ltd., the listed electricity company, rose 1.9% to $5.33, with the stock rebounding after yesterday's sell down, when industry figures showed the company had been overtaken by rival Genesis Energy as the leading supplier in the market, as measured by number of customers.

Infratil Ltd. rose 1.7% to $1.83 after H.R.L. Morrison & Co., the Wellington-based investment bank that manages the company, increased its stake in the diversified utility group to 12%.

Utilico Investments Ltd. sold 15 million shares at $1.85 apiece, or a total $27.8 million, to Morrison, making it the company's largest shareholder.

(BusinessDesk)

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