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.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news