Shares dip as reporting season rolls on

Infratil posts biggest drop while NZX on near five-year high

New Zealand shares dipped as the local reporting season continued to meet expectations with SkyCity Entertainment Group posting a small increase in underlying earnings and signalling growth in the current year.

The S&P/NZX 50 Index fell 5.01 points, or 0.05 per cent, to 10,849.76. Within the index, 18 stocks fell, 25 rose, and seven were unchanged. Turnover was $137.6 million.

SkyCity decreased 1 per cent to $3.97. The casino operator reported a 1.9 per cent lift in normalised earnings.

Fletcher Building fell 1.3 per cent to $4.63 on a volume of 2.5 million shares, more than twice its 1 million average. SkyCity yesterday said it has withheld $39.5m of payments from Fletcher over the delayed construction of its downtown Auckland convention centre and hotel.

Precinct Properties New Zealand, which reports tomorrow, rose 0.6 per cent to $1.83. The commercial landlord also has a dispute with Fletcher over the construction of its Commercial Bay development in the Auckland CBD.

Of companies that have reported so far, Contact Energy rose 0.7 per cent to $8.38, Summerset Group increased 0.5 per cent to $5.90 and

NZX climbed 2.5 per cent to $1.23, its highest close in almost five years.

Heartland Group Holdings advanced 1.3 per cent to $1.62 ahead of its annual result today. Infratil led the market lower, down 2.4 per cent at $4.82. Sky Network Television fell 2.4 per cent to $1.22 and Fonterra

Shareholders’ Fund units dropped 2.2 per cent to $3.53. Spark New Zealand was the most traded stock on a volume of 4.3 million shares, more than its 3 million average. It rose 0.4 per cent to $4.07. Kiwi Property was unchanged at $1.64, Meridian Energy decreased

0.8 per cent to $4.84 and Goodman Property Trust increased 0.2 per cent to $2.14.

Gentrack posted the day’s biggest gain, up 2.6 per cent at $5.60. The stock was upgraded by a broker this week, and Lister said some investors may be seeing it as a better-valued growth option than the likes of Vista

International Group — up 2.4 per cent at $5.60 — and ASX-listed Xero, which rose 1.1 per cent to A$62.70 in late trading. Xero holds its annual meeting in Auckland today.

Property For Industry increased 1.1 per cent to $2.30. Outside the benchmark index, Colonial Motor

Co was unchanged at $9.10 after reporting a 12 per cent decline in annual profit. The board declared a final dividend of 30 cents per share, taking the annual payment to 45 cents, down from 50 cents a year earlier. PGG Wrightson fell 6.1 per cent to $2.16.

The Local Government Agency’s

2033 bond paying annual interest of 3.5 per cent was the most traded debt security on a volume of 2 million. The notes closed at a yield of 1.99 per cent, down 2 basis points.

Heartland Bank’s 2024 bonds paying 3.55 per cent traded on a volume of 1.3 million, closing at a yield of 2.64 per cent, up 2 basis points. Chorus’s 2021 bonds paying 4.12 per cent traded on a volume of 1 million, closing at a yield of 2.1 per cent, down 9 basis points. Chorus shares fell 0.5 per cent to $5.57, a dividend yield of 3.95 per cent.