MARKET CLOSE: NZ shares drop, Sky TV and Steel & Tube fall

Monday 05 December 2016 05:31 PM

MARKET CLOSE: NZ shares drop, Sky TV and Steel & Tube fall while Hellaby gains

By Sophie Boot

Dec. 5 (BusinessDesk) - New Zealand shares declined, dragged lower by Ryman Healthcare, Sky TV and Steel & Tube Holdings, while Hellaby Holdings gained after a lift in its takeover offer from Bapcor.

The S&P/NZX50 Index dropped 50.14 points, or 0.7 percent, to 6,854.71. Within the index, 30 stocks fell, 16 rose and five were unchanged. Turnover was $122.9 million.

Prime Minister John Key today announced he intends to step down in a week, surprising pundits. The announcement hasn't had much impact on the local index, said Craig Stent, director and research analyst at Harbour Asset Management, with negative offshore leads including the resignation of the Italian prime minister Mario Renzi following a constitutional referendum pulling the local index lower.

Ryman Healthcare was the worst performer on the index, down 4.1 percent to $8.37, while Summerset Group Holdings declined 3.9 percent to $4.69 and Kiwi Property Group dropped 3.1 percent to $1.395.

Sky Network Television fell 1.9 percent to $4.57. Sky said the date for a decision on its Commerce Commission application to merge with Vodafone New Zealand has been pushed back to Feb. 23, 2017, from Dec. 21, to give the commission more time to assess a large number of submissions.

Trade Me Group fell 1.4 percent to $4.80. The online retailer has sold its accommodation website Travelbug and online booking engine BookIt, to interests associated with the Torpedo7 sporting goods site for an undisclosed sum. Travelbug and BookIt both predate Trade Me's listing as a public company in 2012. The company launched Travelbug in 2007 and acquired BookIt in 2010.

NZX dropped 1 percent to 99 cents. Cash trading on the NZX increased for a fourth consecutive month in November, with the value and volume of trades rising. The benchmark S&P/NZX 50 Index plunged in early November after Donald Trump was elected US President, but recovered over the course of the month.

Trustpower was the best performer on the index, up 3 percent to $4.49 while Tower gained 2.8 percent to 73 cents and Scales Corp rose 2.3 percent to $3.50.

Outside the main index, former member Steel & Tube Holdings dropped 5.5 percent to $2.24. Along with two other companies, it will be prosecuted by the Commerce Commission following the regulator's investigation into seismic steel mesh, while Fletcher Building's steel division has been given a warning. Steel & Tube has admitted selling "many thousands of sheets" of earthquake reinforcing mesh which it incorrectly labelled as being independently certified.

ASX-listed Bapcor gained 1.8 percent to $4.99 while Hellaby Holdings gained 7.5 percent to $3.44. Bapcor today raised its takeover offer for Hellaby to $3.60 a share from $3.30, bringing it into the independent valuation range, winning increased acceptances from the Accident Compensation Corp and drawing in other institutional investors to lift total support for its proposal to 40 percent.

(BusinessDesk)

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