Orion Health Group leads index down
Strong New Zealand dollar hurting revenue when overseas sales are converted to local currency
New Zealand shares fell in school holiday trading, with and
Orion Health Group Xero New Zealand Air
dropping while bounced after recent losses.
The S&P/NZX 50 Index dropped 11.95 points, or 0.2 per cent, to 7,252.92. Within the index, 33 stocks fell, 12 rose and five were unchanged. Turnover was $120.9 million.
Orion Health Group led the index lower, falling 4.6 per cent to $3.29. At its annual meeting last Thursday, chairman Andrew Ferrier told shareholders the strength of the kiwi dollar was crimping revenue in local currency terms, meaning Orion will get less when sales are converted back into local currency. That currency movement also weighed on Orion’s cash position.
“The stock has retraced from recent highs, it’s been quite a move. There’s a degree of focus returning to the profitability of the revenue generation and how the cash balance is looking, given the comments made,” said Matt Goodson, managing director at Salt Funds Management. shed 3.1 per cent to $19.30, fell 1.9 per cent to dropped 1.9
Xero Heartland Bank Scales Corp
$1.52, and per cent to $3.09. Property stocks weakened slightly, with down 1.5 per cent to $1.97, falling 1.2 per cent to $1.285, and declining 1 per
Stride Property Goodman Property Trust Kiwi Property Group
cent to $1.485.
Goodson said this was slightly surprising given local bond yields declined slightly overnight following global leads and were down a little.
“Our property sector had outperformed quite sharply over the last few weeks when Australia had come under considerable pressure, so perhaps it could just be a little bit of catch-up at work there,” Goodson said.
Air New Zealand
was the biggest gainer, up 2.8 per cent to $1.85 after hitting a 22-month low yesterday. It’s dropped 32 per cent this year, having hit a 14-year record high in January.
“There are two problems: there has been a pickup in oil prices of late, in hopes that OPEC may reach some deal at their latest meeting, and secondly, there has clearly been very sharp yield competition from a number of new entrants on various of their routes. It now seems to have found its level and is finding some support today,” Goodson said. rose 1.6 per gained
Fletcher Building Ebos Group
cent to $10.57 and 1.4 per cent to $18.80. Outside the main index,
plunged 80 per cent to 6c. The shares slumped as low as 4c after the company said an Australian government audit of its subsidiaries across the Tasman could threaten its viability.
Education Group Hellaby Holdings Bapcor Intueri
gained 8.9 per cent to $3.30. ASX-listed auto parts firm has mounted a $322.5m takeover bid for the investment firm as it looks to extend its reach into NZ’s local auto market.
The Victoria-based company is offering $3.30 a share to take full control of Hellaby, an 8.9 per cent premium to Monday’s closing price of $3.03, and has secured acceptances totalling almost 30 per cent, according to a notice to the stock exchange. Bapcor wants to delist Hellaby.