Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


MARKET CLOSE: NZX 50 drops to month low

MARKET CLOSE: NZX 50 drops to month low; Ryman, F & P Healthcare fall on earnings; Telecom, Xero slide

By Suze Metherell

May 21 (BusinessDesk) – The NZX 50 Index fell to a month low as investors await evidence of earnings growth that would justify a fully priced bourse. Fisher & Paykel Healthcare fell ahead of reporting tomorrow, while Ryman Healthcare declined after earnings this week met expectations.

The benchmark index fell 26.318 points, or 0.5 percent, to 5108.573. Within the index, 31 stocks fell, nine rose and 10 were unchanged. Turnover was $116 million.

The NZX 50 has advanced 7.9 percent this year, outperforming Australia’s S&P/ASX 200 Index’s 1 percent gain and Japan’s Nikkei 225 14 percent decline. Investors have been drawn to New Zealand’s economic growth with forecast gross domestic product growth at an annual pace of 3 percent according to Treasury figures.

F&P Healthcare dropped 1.4 percent to $4.16, and has gained 7.8 percent this year. The breathing apparatus manufacturer is due to report its annual earnings tomorrow. Ryman Healthcare, the retirement operator which reported annual earnings on Monday, slid 1.7 percent to $8.30.

“People are deciding that perhaps the New Zealand market has run too far - we’ve got GDP growth that has accelerated to a point now where it’s not going to continue to accelerate,” said Paul Harrison, managing director at Salt Funds Management. “Our market has gotten highly valued now, and we really need some strong results from companies.”

“Looking at that Ryman result the other day, people are used to them exceeding expectations and they didn’t,” Harrison said.
Rival retirement village operator Summerset Holdings Group dropped 2.8 percent to $3.46, while Metlifecare was unchanged at $4.21.

Telecom fell 1.1 percent to $2.66. Auckland International Airport declined 1.6 percent to $3.935.

Xero, the cloud-based accounting software firm, advanced 0.6 percent to $32.50.

Z Energy fell 3.6 percent, or 14 cents, to $3.76, after shedding rights to its 14 cents per share final dividend.

Diligent Board Member Services, the governance app maker, led the benchmark index lower, dropping 3.9 percent to $4.25.

Argosy Property Trust was unchanged at 95.5 cents after it reported annual profit had more than doubled to $85.6 million.

Kiwi Income Property Trust, which posted a 7.8 percent drop in earnings yesterday, was unchanged at 1.16 after Craigs Investment Partners downgraded the stock to a ‘hold’ from a ‘buy’ on forecasted stalling earnings.

Goodman Property Trust, the largest-listed property investor, fell 0.5 percent to $1.045. Property for Industry slid 0.8 percent to $1.31. Precinct Properties New Zealand declined 0.5 percent to $1.045.

Trade Me Group, the online auction site, was the day’s best performer, rising 2.9 percent to $3.61 after dropping to a two-year low yesterday.

Fletcher Building, New Zealand’s largest listed company, rose 0.4 percent to $9.04. Air New Zealand, the national carrier, increased 0.2 percent to $2.135.


© Scoop Media

Business Headlines | Sci-Tech Headlines


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Health: New Zealand's First ‘No Sugary Drinks’ Logo Unveiled

New Zealand’s first “no sugary drinks logo” has been unveiled at an event in Wellington... It will empower communities around New Zealand to lift their health and wellbeing and send a clear message about the damage caused by too much sugar in our diets. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news