Shares take dip, larger stocks ‘underwater’
Comvita does best, Metro Performance Glass, Sky Network TV lose ground
New Zealand shares fell, led lower by Metro Performance Glass and Sky Network Television, while Comvita, A2 Milk and Synlait Milk gained.
The S&P/NZX 50 Index dropped 30.07 points, or 0.4 per cent, to 8425.48.
Within the index, 21 stocks fell, 16 rose and 13 were unchanged. Turnover was $77.3 million.
“We’re underperforming ... compared to global markets, and the strength of the Kiwi [dollar] has had a little bit to do with that, we’ve bounced up nicely against the US dollar and the Aussie,” said Grant Williamson, broker at Hamilton Hindin Greene.
“Almost all our largest stocks were underwater [yesterday] so that has put a bit of pressure on the index. It will probably be another week before we really start to see volumes pick up.”
Metro Performance Glass
led the index lower, dropping 2.9 per cent to $1.
Sky Network Television
was
cher Building
$7.69.
Comvita Flet-
down 2.5 per cent to $2.78 and fell 1.5 per cent to was the best performer, up 3 per cent to $8.65. A2 Milk rose
Summerset Group Trustpower Synlait Milk
1.1 per cent to $8.36 and gained 0.9 per cent to $7.04.
gained 0.2 per cent to move up to $5.53.
The retirement village operator and developer lifted fourth-quarter sales 31 per cent, setting a quarterly record, due largely to a jump in the resale of occupation rights.
Last month Summerset raised annual earnings guidance on the strength of resale volumes and margins, projecting underlying profit of between $77m and $79m in calendar 2017, up from a previous forecast of $72m to $75m.
“The company upgraded their profit a few weeks ago so that announcement . . . has had little response from the market,” Williamson said. rose 0.3 per cent to $6.04.
The company owns 65 per cent of King Country Energy, and has teamed up with King Country Electric Power Trust, which owns 19.98 per cent, to jointly offer $5 a share for the remaining shares in King Country Energy.