Market commentary

WELLINGTON: Leading retirement village operator Ryman Healthcare confounded the sceptics with a record annual financial result and provided a positive tone to the New Zealand sharemarket at week’s end.

The S&P/NZX 50 Index was up 60.45 points or 0.54% to 11,267.39 after reaching an intraday high of 11,294.65. The index finished the week with a gain of nearly 0.9% but is still down nearly 13.4% for the year.

There were 86 gainers and 45 decliners over the whole market, with 38.5 million shares worth $138.77 million changing hands.

Ryman Healthcare has been one of the battered stocks, falling from a high of $15.80 set in early September last year and down 33.79% over the last 12 months.

But Ryman leaped 71c or 7.77% to $9.85 after reporting a 13.6% increase in underlying net profit to $255m on cash receipts of $1.4 billion, up 18.7% for the year ending March.

Harbour Asset Management portfolio manager Shane Solly said Ryman’s result was better than expected, backed by better sales and activity in Melbourne and improved margins on New Zealand units.

He said the easing of Covid restrictions in Shanghai and the Chinese move to cut longterm mortgage rates and reignite the housing market provided a boost to markets.

At home, Summerset Group Holdings benefited from Ryman’s strong result, rising 50c or 4.77% to $10.98.

My Food Bag was one of the day’s biggest gainers, rising 6c or 7.59% to 85 after beating its prospectus forecasts.

Sky Network Television increased 14c or 5.88% to $2.52, market leader Fisher and Paykel Healthcare was up 26c to $20.85; Ebos Group gained 50c to $40; Mainfreight collected $1 to $75.10 and DGL Group rebounded a further 14c or 4.17% to $3.50.

Delegat Group was down 23c or 1.85% to $12.20; Contact Energy declined 13c to $7.68; Meridian shed 10c or 2.17% to $4.50 and Skellerup Holdings decreased 10c or 1.87% to $5.25. —