Metlifecare best performer as retirement stocks lift market

New Zealand shares rose yesterday, led by retirement stocks Metlifecare and Summerset Group, while NZX and Pushpay extended their gains.

The S& P/ NZX 50 index jumped 38.88 points, or 0.5 per cent, to 7649.77. Within the index, 33 stocks rose, 10 fell and seven were unchanged. Turnover was $ 196 million.

Retirement village operator Metlifecare was the best performer, rising 3.1 per cent to $ 5.58 after a broker put out a positive research note on the stock, said Hamilton Hindin Greene director Grant Williamson. Fellow companies in the sector also gained, with Summerset Group Holdings up 1.9 per cent to $ 4.85 and Ryman Healthcare gaining 0.3 per cent to $ 9.06. Ryman has surged 8.6 per cent in seven sessions since last Wednesday and is now at a nine- month high. “For a stock that has been a little disappointing in the past 2.5 years, there’s certainly some renewed interest in the past few days,” said Williamson.

Trustpower gained 1.8 per cent to $ 5.60. It expects annual earnings at the top of its forecast range due to a jump in electricity generation volumes and higher wholesale prices in the June quarter.

Ebos Group rose 2.1 per cent to $ 17.90 and Vital Healthcare Property Trust advanced 1.4 per cent to $ 2.25.

Another noted performer this week has been NZX, which gained 0.9 per cent to $ 1.19 yesterday. It’s up 5.3 per cent in the week and yesterday’s price is the highest since February 2015

Williamson said investors had obviously been encouraged by what the stock market operator has been say- ing. It is preparing for a third- quarter review of its small cap markets.

Tourism Holdings was the worst performer, down 2.1 per cent to $ 4.18, while Comvita dropped 2 per cent to $ 6 and Arvida Group fell 0.8 per cent to $ 1.28.

Outside the benchmark index, Pushpay Holdings continued to gain, up 3.4 per cent to $ 1.81. It has gained 9.9 per cent following the close of a $ 25m bookbuild on Thursday, where the shares were sold at $ 1.51, an 8.5 per cent discount. The company also raised its annualised committed monthly revenue target to US$ 100m, announced plans to list in the US in the next 36 months and gave guidance of US$ 70m in revenue for the 2018 financial year, more than double 2017’ s US$ 34m.

Shareholders of GeoOp, the unprofitable management app developer, have approved plans to relocate to the ASX from the NZAX and raise funds via an initial public offering that could dilute their holdings by as much as 40 per cent. GeoOp’s shares were suspended from trading on June 29 at 22c, pending yesterday’s special meeting in Auckland, and NZX Regulation has now said the suspension will continue until GeoOp either formally delists or cancels its plan to move to the ASX.