INDEPENDENT NEWS

MARKET CLOSE: NZ shares mixed, Xero at 3-year record

Published: Thu 14 Sep 2017 08:39 PM
MARKET CLOSE: NZ shares mixed, Xero at 3-year record and Summerset gains while Air NZ, Vector fall
By Sophie Boot
Sept. 14 (BusinessDesk) - New Zealand shares were mixed, with investors positioning ahead of the general election Sept 23. Xero rose to a three-year high with Summerset Group up while Vector fell.
The S/NZX50 Index fell 8.2 points, or 0.1 percent, to 7,819.23. Within the index, 23 stocks rose, 21 fell and six were unchanged. Turnover was $146 million.
"The election is still very much in focus, volume this morning running through the market was very light. There's not a lot of corporate news flow," said Peter McIntyre, investment adviser at Craigs Investment Partners. "We've been quick to move away from geopolitical events to the election - we've seen different polls come through, and market participants positioning themselves, because at this stage it's fifty-fifty."
Xero was the best performer, up 3.2 percent to $28.10, the highest it has traded since June 2014. The stock has rallied 55.6 percent this year.
"There has been some talk that Xero could benefit if our tax system changes, I think there's more to it than that," McIntyre said. "Once it starts to break even they'll definitely see earnings growth. Its uptake within New Zealand and Australia is strong, but it has still got that global appeal to it."
Summerset Group gained 2 percent to $5.10. It plans to build its fifth retirement village in the greater Wellington region with the purchase of a 6-hectare block of land north of the city. The Wellington-based company wants to develop a 290-unit village with a rest home and hospital care and is Summerset's seventh greenfield site. The land is in Porirua's Kenepuru Landing development, a joint residential development between local iwi Ngati Toa and Tauranga-based developer Carrus Corp.
"It still sees a lot of growth in the marketplace, I don't think it comes as a surprise," McIntyre said. "There have been some reports saying that if retirement villages weren't developing those sites New Zealand would have a massive shortfall. It's a bit of positive news from Summerset which reported very well."
Air New Zealand was the worst performer, down 2.6 percent to $3.33, while Arvida Group shed 1.6 percent to $1.23.
Vector dropped 2.4 percent to $3.22. "It's been weak since posting a reasonable result, it looks likely it will be removed from some FTSE indices this coming Friday," McIntyre said. "There is obviously some selling that has to occur so that's provided some weakness to the share price."
Auckland Airport dipped 0.3 percent to $6.36. "For the month rolling it's down over 5 percent, it's a stock that usually has good liquidity running through it," McIntyre said. "I think there are still concerns, even though growth outlook is strong, they're doing massive capital outlay and maybe some parts of the market have got concerns about that effect on its earnings."
Outside the benchmark index, Turners Automotive Group fell 4.8 percent to $3.20. Yesterday it was halted during a $25 million placement at $3.02 per share, which was fully subscribed with the underwriter not called on to top up the discounted offer.
"That was eagerly sought after, it was snapped up," McIntyre said. "Those able to participate will be happy, it's a company that still sees a lot of growth in the market and they've got a good relationship with Motor Trade Finance. It's good news they were able to complete the placement so quickly overnight."
(BusinessDesk)
BusinessDesk
Independent, Trustworthy New Zealand Business News
The Wellington-based BusinessDesk team led by former Bloomberg Asian top editor Jonathan Underhill and Qantas Award-winning journalist and commentator Pattrick Smellie provides a daily news feed for a serious business audience.
Contact BusinessDesk
Email:

Next in Business, Science, and Tech

Refinery prepares to repair damaged pipeline
By: Refining NZ
Cassini's grand Saturn finale - Expert Reaction
By: Science Media Centre
Court rejects Cathay unit's retirement age of 55 for pilots
By: BusinessDesk
Judgment: AFFCO NZ Limited v NZ Meat Workers Union
By: NZ Supreme Court
NZ govt agrees on negotiating mandate for upgraded FTA
By: BusinessDesk
Air NZ restricts ticket sales as Auck fuel shortage bite
By: BusinessDesk
MARKET CLOSE: NZ shares up, milk stocks Synlait, A2 gain
By: BusinessDesk
MBIE: Wiri terminal wouldn't have avoided pipeline woes
By: BusinessDesk
UPDATE: NZ Refining, Air NZ shares fall
By: BusinessDesk
NZ Refining says pipeline leak to hit revenue by up to $15m
By: BusinessDesk
Update on Marsden Point pipeline disruption
By: New Zealand Government
Update on Marsden Point pipeline disruption
By: New Zealand Government
Update on Marsden Point pipeline disruption
By: New Zealand Government
Temporary disruption to Marsden Point pipeline
By: New Zealand Government
Freight being shifted off planes as fuel crisis worsens
By: New Zealand Labour Party
View as: DESKTOP | MOBILEWe're in BETA! Send Feedback © Scoop Media