MARKET CLOSE: NZ shares down, Chorus and Air NZ fall while Ryman, NZX gain
By Sophie Boot
July 12 (BusinessDesk) - New Zealand shares dropped, led lower by Chorus and Air New Zealand, while Ryman Healthcare and
NZX rose as investors search for untapped value.
The S/NZX50 Index fell 42.55 points, or 0.6 percent, to 7,586.02. Within the index, 29 stocks fell, 13 rose and eight were
unchanged. Turnover was $176 million.
The local index followed the Australian index lower, with the ASX down 1.1 percent at 5pm local time, after US markets
fell overnight amidst uncertainty ahead of Federal Reserve Chair Janet Yellen's testimony to the US House panel. Trading
has been softer in the past fortnight as school holidays have begun, with institutional news scarce ahead of the August
financial reporting season.
"You've got a bit of time before the next results round, the market is still pretty pricey so it's hard to drive forward
at the moment," David Price, director of institutional equities at Forsyth Barr said. "The consensus forecasts have been
drifting lower, the rubber band can't stretch forever. Against the backdrop of rising interest rates, if you're not
getting earnings growth it's hard to see multiples staying where they are. Something's got to give, and it's going to be
prices."
Chorus led the index lower, down 2.6 percent to $4.38, while Air New Zealand was down 2.2 percent to $3.49 and Summerset
Group Holdings dropped 1.9 percent to $4.70.
Ryman Healthcare was the best performer, rising 1.9 percent to $8.99, while NZX gained 1.8 percent to $1.15.
"It wouldn't be often that NZX is top of the moves. People pick through things that haven't really performed to look for
the next thing - a lot of stocks have had a pretty strong run," Price said. "On a relative basis, Ryman has been a big
performer having been quite weak of late, it's had a few very strong days. You always pick through the rubble to see
what you can find, little pockets of value."
Xero dipped 0.1 percent to $25.86. Shareholders today voted to increase the board's fee pool to $1.4 million from
$850,000, which will let the Wellington-based company take on two or three new directors in the UK or potentially the
US. Kiwi Property Group was halted at $1.385. Retail investors took up half the shares available to them in their
component of a planned $161 million capital raise, which the property investor wants to help fund expansion projects in
Auckland. It raised $38 million in the retail component of its one-for-11 pro rata entitlement offer, representing about
50 percent of the 56 million shares available, it said in a statement.
Outside the benchmark index, Pushpay Holdings was halted at $1.65. The mobile payments app developer is in a trading
halt ahead of a $25 million bookbuild, which it says will accelerate its growth, and has raised its annualised committed
monthly revenue (ACMR) target to US$100 million.
The company, which is dual-listed on the ASX, also plans to list in the US within the next 36 months, it said today in
its first quarter update. It gave guidance of US$70 million in revenue for the 2018 financial year, more than double
2017's US$34 million.
(BusinessDesk)