Otago Daily Times

Mar­ket com­men­tary


WELLINGTON: Re­tire­ment vil­lage op­er­a­tor Ry­man Health­care — one of the more favoured stocks — suf­fered the most when the New Zealand share­mar­ket fell nearly 1% in a late dive.

The S&P/NZX 50 In­dex moved in a nar­row range for most of the day and then fell more in the last hour of trad­ing to fin­ish at 12,441.81, down 115.32 points, or 0.92%. A to­tal of 45.5 mil­lion shares worth $161.7 mil­lion changed hands, and there were 60 gain­ers and 69 de­clin­ers over the whole mar­ket.

Ry­man Health­care re­ported its lat­est half­year re­sult and though it was not too bad, its share price fell 38c, or 2.45%, to $15.13.

Har­bour As­set Man­age­ment port­fo­lio manager Shane Solly said it was a soft end to the week, and it was all about ro­ta­tion of stocks and fi­nan­cial re­sults.

‘‘The ro­ta­tion is a tough one. There’s pos­i­tive news on vac­cine de­vel­op­ment one day and peo­ple are try­ing to in­vest in stocks that will ben­e­fit. And then the next day it’s dif­fer­ent with in­for­ma­tion that Covid cases are surg­ing. It’s a re­minder that there’s still some time be­fore a vac­cine gets in the mar­ket.’’

The mar­ket will get a clearer pic­ture next week of how the busi­ness world is per­form­ing, nine com­pa­nies re­port­ing and Fletcher Build­ing hold­ing its an­nual meet­ing.

Mr Solly said Ry­man had pro­duced a good re­sult, despite its un­der­ly­ing profit be­ing 14% down. It had done a great job dur­ing the Covid­19 cri­sis and it would take a lit­tle longer to see good growth come through.

‘‘I think the mar­ket is tak­ing time to di­gest the re­sult.’’

Ry­man had a 9.1% in­crease in rev­enue to $423.19 mil­lion for the six months end­ing Septem­ber and its un­der­ly­ing profit fell 14.2% to $88.38 mil­lion. Its net profit, how­ever, rose 12.8% to $212.4 mil­lion, which in­cludes prop­erty reval­u­a­tion gains.

Ry­man is pay­ing an in­terim div­i­dend of 8.8c a share on De­cem­ber 18, and is at present de­vel­op­ing 12 new vil­lages in New Zealand and Aus­tralia. It has sold 121 new oc­cu­pa­tion rights worth $90 mil­lion, down from 229 worth $160.7 mil­lion in the pre­vi­ous first half.

Fisher & Paykel Health­care, which re­ports on Wed­nes­day, fell 42c to $33.02, while a2 Milk rose 7c to $14.61. An­other re­tire­ment vil­lage op­er­a­tor, Sum­mer­set Group Hold­ings, fell 24c, or 2.23%, to $10.51.

The energy stocks again came un­der pres­sure, Mer­cury fall­ing 8c to $5.80, Merid­ian down 8.5c to $5.885, Con­tact slip­ping 2c to $7.72, and Gen­e­sis los­ing 10c, or 3.18%, to $3.15.

Main­freight fin­ished the week down $1.45c, or 2.42%, to $58.50; Port of Tau­ranga fell 12c to $7.15; and San­ford de­clined 14c, or 2.77%, to $4.91.

Serko re­cov­ered 30c, or 5.66%, to $5.60, Restau­rant Brands gained 26c, or 2.18%, to $12.20, and Air New Zealand was up 2.5c to $1.705.

AFT Phar­ma­ceu­ti­cals slumped 25c, or 4.81%, to $4.95 despite de­liv­er­ing a six­month re­sult of in­creased rev­enue and profit. Push­pay Hold­ings, which is mak­ing a four­for­one share split by Novem­ber 27, fell 10c to $7.19.

Per­sonal lend­ing firm Har­money, which had a mixed list­ing on the NZX and ASX mar­kets the day be­fore, rose 13c, or 3.64%, to $3.70 — just above its list­ing price of $A3.50 ($NZ3.68).

Heart­land Group Hold­ings said it was re­assess­ing the val­u­a­tion of its 8.44% stake in Har­money in prepa­ra­tion for its lat­est half­year fi­nan­cial re­sult. Heart­land’s share price was un­changed at $1.39. —

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