Spark leads the sharemarket higher
Arvida gains ahead of today’s earnings announcement
New Zealand shares edged higher, led by Spark New Zealand and Arvida Group, while Scales Corp and Fisher & Paykel Healthcare weakened. The S&P/NZX50 Index gained 6.8 points, or 0.08 per cent, to 8645.2. Within the index, 21 stocks rose, 20 fell and nine were unchanged. Turnover was $116 million.
Spark was the best performer, rising 2.4 per cent to $3.635, having outlined plans to accelerate restructuring last week, while Arvida gained 2.4 per cent ahead of an earnings announcement today. Flet
cher Building increased 2 per cent to $6.68. Investore Property rose 1.4 per cent to $1.48. The retail landlord, spun out of Stride Property, boosted annual earnings 16 per cent as the acquisition of three Bunnings stores added to rental income and reduced its reliance on Countdown supermarkets. Kathmandu Holdings was the worst performer, down 2.8 per cent to $2.43, while Fonterra Shareholders Fund fell 1.9 per cent to $5.23 in continued weakness since it last week cut its projected dividend payments as increased global dairy prices pushed up what it plans to pay to its farmer shareholders.
Scales declined 2.3 per cent to $4.74. A notice to the stock exchange yesterday showed managing director Andy Borland cut his stake in the NZX-listed agribusiness on April 23, with the shares trading near a record high. F&P Healthcare dropped 1.3 per cent to $13.18. The company lifted 2018 annual profit to the top end of its forecast range and said it expects record earnings in the coming year as it benefits from growing global demand.
“It delivered a really solid result, the outlook was bang in line but guidance was a big miss for the consensus viewpoint,” said Peter McIntyre, investment adviser at Craigs Investment Partners. “When you’ve got a company that has performed exceptionally well, and trading on a high multiple, the expectation is your future earnings are going to be very very good. The shares got down around $12.84, so it has been bouncing around. It’s a quality business, everyone knows that, but it is priced to perfection.”
Goodman Property Trust dipped 0.7 per cent to $1.42. The NZX-listed commercial and industrial property investor saw profit fall in 2018 as it focused on pivoting to the Auckland industrial market.
Outside the benchmark index,
Evolve Education Group dipped 3.3 per cent to 58c. It booked previously signalled impairment charges to its Porse in-home childcare unit, having twice downgraded guidance.