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


Oceans: NOAA Declares Third Ever Global Coral Bleaching Event

As record ocean temperatures cause widespread coral bleaching across Hawaii, NOAA scientists confirm the same stressful conditions are expanding to the Caribbean and may last into the new year, prompting the declaration of the third global coral bleaching event ever on record. More>>

Scoop Business: A Decade Of Government Pre-Seed Investment

More publicly-funded science is being commercialised after a decade of government ‘pre-see’d investment, according to an independent review. More>>


Solid Energy: Plan To Shut Unprofitable Huntly East Mine

Solid Energy, the state-owned coal miner in voluntary administration, plans to shut down its unprofitable Huntly East mine and lay off 65 staff after deciding the site stands "no chance whatsoever" of finding a buyer. More>>


E Tū: Merger Creates NZ's Biggest Private Sector Union

E tū has been created by the merger of the Engineering, Printing and Manufacturing Union and Service and Food Workers’ Union. It represents more than 50,000 working New Zealanders in industries as diverse as aviation, construction, journalism, food manufacturing, mining and cleaning. More>>


Internet: NZ Govt Lifts Target Speeds For Rural Broadband

The government has lifted its expectations on faster broadband speeds for rural New Zealand as it targets increased spending on research and development in the country's information and communications technology sector, which it sees as a key driver for export growth. More>>


Banks: Westpac Keeps Core Government Transactions Contract

The local arm of Westpac Banking Corp has kept its contract with the New Zealand government to provide core transactions, but will have to share peripheral services with its rivals. More>>


Science Investment Plan: Universities Welcome Statement

Universities New Zealand has welcomed the National Statement of Science Investment released by the Government today... this is a critical document as it sets out the Government’s ten-year strategic direction that will guide future investment in New Zealand’s science system. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news