Wednesday 02 November 2016 05:30 PM
MARKET CLOSE: NZ shares down, falls led by Tilt, Orion, TradeMe
By Sophie Boot
Nov. 2 (BusinessDesk) - New Zealand shares dropped over a percent as investors felt pre-US election jitters, with Tilt
Renewables, Orion Health Group and Trade Me Group leading the index lower.
The S/NZX50 Index dropped 76.75 points, or 1.1 percent, to 6,853.74. Within the index, 29 stocks fell, 12 rose and 10 were
unchanged. Turnover was $150.3 million.
"There's pretty broad selling, and it's all pre-election risk-off in heightened uncertainty," said Daniel Metcalfe,
senior investment advisor at OMF. "The market's had a pretty good run over the last few years, and this is one of the
most interesting and fearful events we've had to deal with for a while. The volatility index in the US has increased
quite significantly, it's spiked up having been quiet for some time. Spreads have widened significantly, which is a sign
of people's fear right now."
Tilt Renewables, the windfarm operator carved out of Trustpower, was the worst performer on the index, down 4.6 percent
to $2.10, while Ryman Healthcare dropped 3.8 percent to $8.56.
Orion Health Group hit an eight-month low, falling 3.8 percent to $3.07.
"They've really been an underperformer - since the IPO, they started off winning some contracts earlier in the year and
turned around market expectations, but they've been taking a lot longer to deliver the goods that everyone might want
them to. The risk-off is exaggerated in those pure growth stories," Metcalfe said.
Trade Me Group dropped 3.3 percent to $4.65, which Metcalfe said was due to Facebook's increased online marketplace
offering.
New Zealand Refining Co was the best performer, up 4 percent to $2.34. Freightways gained 1.3 percent to $6.45 and
Genesis Energy advanced 1 percent to $1.94.
SkyCity Entertainment Group resumed its falls from last week, down 1 percent to $3.81. In October, the casino operator
posted weaker first-quarter revenue, while interim chief executive John Mortensen warned there would be a drop in the
immediate term in the business it gets from high-rollers following a Chinese government corruption crackdown.
Outside the benchmark index, Cavalier Corp shed 18 percent to 64 cents. The carpet maker said 2017 earnings may fall as
much as 52 percent to between $3 million to $5 million in the year ending June 30, 2017, from $6.3 million a year
earlier, as it incurs one-time costs to consolidate its manufacturing operations.
(BusinessDesk)
ends