Market commentaries
AUCKLAND: New Zealand shares rose as Goodman Property Trust’s joint venture with GIC sold seven buildings in downtown
Auckland, and as Ryman Healthcare chalked up another record profit. A2 Milk Co and Comvita fell.
The S&P/NZX 50 index gained 53.95 points, or 0.6%, to 8657.33. Within the index, 37 stocks rose, six fell and seven were unchanged. Turnover was $128 million. Goodman Property rose 2.2% to $1.41.
The real estate investor’s joint venture with Singapore sovereign wealth fund GIC sold seven Auckland CBD buildings to US private equity firm Blackstone for $635 million, meaning the NZX-listed property trust will reap $323.9 million.
‘‘They had an unsolicited approach from an offshore buyer, sold at a passing yield of 6.6%, which given the office property is on leasehold land, and one would certainly expect another round of land rental increases to come through, appears to be a great sale for Goodmans,’’ said Matt Goodson, managing director at Salt Funds Management. ‘‘The market hasn’t missed that.’’
Ryman gained 2.5% to $11.52. The Christchurchbased retirement home operator and developer lifted annual underlying earnings 14% to $203.5 million and said it anticipates more growth with 16 villages in the pipeline.
Rival operator Summerset Group rose 2.9% to $7.22, while Metlifecare declined 0.3% to $5.94.
A2 dropped 4% to $11.30, rounding out a 13% slump for the week. The milk marketer missed expectations, prompting some analysts to reassess what have been optimistic assumptions for the company’s outlook.
‘‘For the first time you’re starting to see a mixture of views on A2,’’ Mr Goodson said. Still, the inclusion of A2 in a key MSCI index at the end of the month creates buying pressure, potentially limiting its decline, he said.
Honey products exporter Comvita fell 1.9% to $6.77. Australian shares closed weaker as mining and banking stocks lost ground, despite the energy sector and vaccines giant CSL giving the local market a shot in the arm.
The benchmark S&P/ASX200 index closed down 6.9 points, or 0.11%, to 6087.4 yesterday, while the broader All Ordinaries index fell 6.3 points, or 0.1% at 6190.9 points. The S&P/ASX200 dropped almost 29 points over the week but CommSec chief market analyst Steven Daghlian said it was the first sustained market pullback since the end of March.