MARKET CLOSE: NZ shares mixed as Kathmandu jumps on strong sales; Ryman dips
By Paul McBeth
Nov. 23 (BusinessDesk) - New Zealand shares were mixed, as strong sales buoyed Kathmandu while slowing property markets
were seen weighing on Ryman Healthcare. Fletcher Building bounced back from a 14-year low.
The S/NZX 50 index decreased 1.78 points, or 0.02 percent, to 8,701.38. Within the index, 22 stocks fell, 22 gained and six
were unchanged. Turnover was $166 million, of which Fletcher accounted for $70.5 million.
Kathmandu rose 12 percent to $2.78 on larger volumes than usual. The outdoor equipment chain beat expectations reporting
an 8.3 percent increase in sales from its Kathmandu branded stores and benefiting from a strong performance from its
recently acquired US footwear unit, Oboz.
Peter McIntyre, an investment adviser at Craigs Investment Partners, said investors have largely been pessimistic about
the fortunes for retailers due to the threat from online rivals. However, Kathmandu had managed its inventory well and
maintained margin to deliver strong sales in the quarter.
"That was a really good result and potentially surprised the market a little bit," he said.
Ryman slipped 0.2 percent to $11.48 after reporting a 14 percent increase in underlying first-half earnings. McIntyre
said the results noted a weaker building rate in coming years, with concerns about slowing property markets in Auckland
and Melbourne. Chief executive Gordon McLeod downplayed the impact of slowing property markets, pointing to its
experience during the GFC downturn.
Rival Metlifecare fell 1.8 percent to $5.52 on light volumes, the biggest decline on the day.
Fletcher gained 2 percent to $4.69 on volumes of 15.3 million shares, compared to its 1.5 million 90-day average.
McIntyre said building companies have been re-rated, which raised questions about how much Fletcher might get for its
international Formica business which is up for sale. The lack of a defined dividend policy at this week's annual meeting
compounded the grim outlook for the Australian building market, he said.
Other companies to have come under selling pressure in the past three months gained today. Pushpay Holdings rose 2.7
percent to $3.07, Heartland Group increased 2.1 percent to $1.47 and Synlait Milk advanced 1.8 percent to $8.70.
A2 Milk increased 0.3 percent to $10.53 on volumes of 3.3 million, while Spark New Zealand declined 1.6 percent to
$4.075 on average volume of 2.8 million.
Among other companies on volumes of more than one million shares, Meridian Energy slipped 0.2 percent to $3.185 on
average volumes. Infratil gained 0.4 percent to $3.545 on a volume of 1.4 million compared to a 90-day average of
357,000.
Vital Healthcare Property Trust decreased 0.5 percent to $2.11 after manager NorthWest said it won't exercise rights to
terminate directors or raise its management fee above current levels until it reviews the fees in the first quarter of
next year.
Outside the benchmark index, Warehouse gained 1 percent to $2.11. Chair Joan Withers told shareholders today that 2019
is a critical year for the turnaround plan and acknowledged that investors want proof before supporting a higher share
price.
(BusinessDesk)