Pushpay leads NZ shares lower
Summerset gains on back of plans for new development
New Zealand shares fell, led lower by ongoing weakness in Pushpay Holdings and as construction sector fears weigh on Fletcher Building, while Summerset Group Holdings gained.
The S&P/NZX 50 Index dropped 27.4 points, or 0.3 per cent, to 8875.73. Within the index, 25 stocks fell, 15 rose and 10 were unchanged. Turnover was $124.8 million.
Pushpay led the index lower, down 3.7 per cent to $3.70. The stock has dropped 10.8 per cent since August 1, when the company delivered first-quarter revenue within guidance and reshuffled its senior management after another abrupt executive exit.
“Certainly since their announcement they’ve traded lower, obviously it disappointed the market somewhat and has put the share price under a wee bit of pressure,” said Grant Williamson, broker at Hamilton Hindin Greene. Fletcher Building fell 2 per cent to $6.90 as policymakers continue to grapple with skinny margins in the wider construction sector. Freightways dropped 1.9 per cent to $7.75 and Port of Tauranga declined 1.8 per cent to $4.85. SkyCity Entertainment Group fell 1.2 per cent to $3.98 ahead of today’s earnings announcement.
The major story of the day was outside the benchmark index, with Steel & Tube Holdings in a trading halt at $1.46. The steel supplier, whose shares have lost almost a third of their value this year, plans to raise about $80.9m at a steep discount to repay debt and strengthen its balance sheet as it restructures its business under new management.
Summerset was the best performer, up 1.2 per cent to $7.69. It has bought land to develop its second New Plymouth retirement village as it remains on track to build 450 retirements units across its New Zealand villages. Summerset currently has 23 villages completed or in development across the country, housing more than 5000 residents.
Kiwi Property Group rose 1.1 per cent to $1.365 and Stride Property gained 1.1 per cent to $1.87. NZX rose 0.9 per cent to $1.09. The stock market operator will recognise an $800,000 charge on the sale of its remaining agri businesses to GlobalHQ, which recently bought the Farmers Weekly publication.
Also in a halt outside the index was
Serko, at $2.84. The online travel booking software developer plans to raise $15m selling shares at a 3.2 per cent discount to institutional investors to speed up its growth trajectory, having already raised revenue guidance. It will sell 5.5 million shares, or about 7.3 per cent of the company, at $2.75 apiece to investors in a fully underwritten placement.