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

 

Fossils: Ancient Penguins Lived Alongside Dinosaurs?

Penguins are much older than previously thought and their evolution probably dates back to the days of the dinosaurs, according to research on the fossilised leg bone and toes of a giant ancient penguin found in rocks near Waipara, North Canterbury. More>>

No Voda/Sky: Commission Declines Clearance For Merger

The Commerce Commission has declined to grant clearance for the proposed merger of Sky Network Television and Vodafone New Zealand. More>>

ALSO:

EARLIER:

Power: IEA Report On New Zealand's Energy System

Outside of its largely low-carbon power sector, managing the economy’s energy intensity and greenhouse gas emissions while still remaining competitive and growing remains a challenge. More>>

ALSO:

NASA: Seven Earth-Size Planets Around A Single Star

NASA's Spitzer Space Telescope has revealed the first known system of seven Earth-size planets around a single star. Three of these planets are firmly located in the habitable zone, the area around the parent star where a rocky planet is most likely to have liquid water. More>>

ALSO:

Auckland Transport Case: Men Guilty Of Corruption And Bribery Will Spend Time In Jail

Two men who were found guilty of corruption and bribery in a Serious Fraud Office (SFO) trial have been sentenced in the Auckland High Court today... The pair are guilty of corruption and bribery offences relating to more than $1 million of bribes which took place between 2005 and 2013 at Rodney District Council and Auckland Transport. More>>

ALSO:

Hager Raid: Westpac Wrong To Release Bank Records To Police

The Privacy Commissioner has censured Westpac Banking Corp for releasing without a court order more than 10 months of bank records belonging to the political activist and journalist Nicky Hager during a police investigation into leaked information published in Hager's 2014 pre-election book, 'Dirty Politics'. More>>

ALSO:

EARLIER:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news