Retirement village sector gets pounded
NZ market takes negative turn on eve of OCR call
The New Zealand sharemarket took a turn for the worse on the eve of the latest official cash rate announcement — and the retirement village sector continued to take a pounding.
A topsy-turvy S&P/NZX 50 Index closed at 11,420.42 points, down 19.97 points or 0.17 per cent following a half per cent gain the day before — though it did have a late rise in the last half hour matching session.
There were 64 gainers and 70 decliners on the main board with 43.45 million shares worth $146.52 million changing hands.
Mark Lister, head of private wealth research with Craigs Investment Partners, said there was a cautious, even nervous, tone to trading on the local market and everyone was hanging out for the Reserve Bank monetary policy statement and official cash rate increase (OCR).
“It will be an exciting day, if you find these things interesting,” Lister said. “The market has 60 per cent priced in a 75 basis points increase in the OCR, and if it’s 50 basis points, it will still have an impact on the market.
“The commentary around where interest rates are heading next is just as important. It’s also Thanksgiving Week in the United States with shortened trading and the markets there are directionless. We aren’t getting the leads we normally do.”
Lister said the “poor old” retirement sector remains at the bottom of the heap of NZX movers, and investor sentiment is quite negative at the moment. “Even though the companies provide healthcare and their needs-based models make them resilient, they are sensitive to house prices and we know what’s been happening to them.”
House prices nationally have been falling for 11 consecutive months and are now some 12 per cent below the peak of November last year.
Ryman Healthcare fell a further 53c or 7.12 per cent to a new low of $6.91. Ryman’s share price has fallen just over 14 per cent in three trading days. Summerset Group was down 31c or 3.2 per cent to $9.38; Arvida declined to $1.19; while Oceania Healthcare was up 1c to 82c on the eve of reporting its latest financial result. Radius Residential Care was down 1.5c or 4.76 per cent to 30c.
Transtasman healthcare and animal care products supplier Ebos Group continued its climb, gaining 74c or 1.8 per cent to $41.85.
Mainfreight rebounded 95c to $71.
Fisher and Paykel Healthcare was up 17c to $20.95; a2 Milk increased 15c or 2.29 per cent to $6.69;
Hallenstein Glasson added 13c or 2.34 per cent to $5.65; Ventia Services recovered 5c or 1.82 per cent to $2.80; and Vulcan Steel collected 23c or 2.73 per cent to $8.64.
Insurer Tower gained 1.5c or 2.22 per cent to 69c; Gentrack rose 7c or 4.38 per cent to $1.67; and PGG Wrightson was up 8c or 1.93 per cent to $4.23.
Auckland International Airport gave up its gain of the day before, falling 19c or 2.33 per cent to $7.95, and Freightways was down 28c or 2.75 per cent to $9.91.
The energy sector drifted, with
Mercury declining 22c or 3.85 per cent to $5.50; Meridian down 6c to $4.66; and Genesis decreasing 5c or 1.88 per cent to $2.61.
Property company Argosy , up 4.5c or 3.72 per cent to $1.255, reported that half-year net income increased 3.6 per cent to $54.95m and net profit was $10.69m.
Its occupancy rate was 98.9 per cent and rent reviews saw annualised rental growth of 2.6 per cent. The fullyear dividend guidance remained at 6.65c a share, a 1.5 per cent increase on last year.
Another property company, Asset Plus, fell 1.5c or 6.67 per cent to 21c.
Restaurant Brands shed 15c or 2.14 per cent to $6.86; Vista Group was down 3c or 1.92 per cent to $1.53;
Winton Land declined 5c or 2.27 per cent to $2.15; Serko decreased 5c or 1.96 per cent to $2.50; and Paysauce shed 2c or 6.35 per cent to 29.5c.
Napier Port declined 5c or 1.82 per cent to $2.70; Scales Corp was down 8c to $4.51; and Metro Performance Glass, which is reviewing its organisation, fell 2.1c or 10.24 per cent to 18.4c.
Sky TV was up 3.2c to $2.30 after implementing its $70m capital return to shareholders, with one in every six shares held having been cancelled. The money will be paid on November 29.