Article – BusinessDesk
May 22 (BusinessDesk) New Zealand shares rose as Ryman Healthcare climbed to a new record, bouncing back from a decline that may have been triggered by a rivals stock selldown, while Fletcher Building halted its slide analyst presentation sin …
MARKET CLOSE: NZ shares rise; Ryman resumes climb, Fletcher finds base
May 22 (BusinessDesk) – New Zealand shares rose as Ryman Healthcare climbed to a new record, bouncing back from a decline that may have been triggered by a rival’s stock selldown, while Fletcher Building halted its slide analyst presentation sin Australia.
The NZX 50 Index gained 19.34 points, or 0.4 percent, to 4610.18. Within the index, 23 stocks rose, 16 fell and 11 were unchanged. Turnover was $187 million, with $60 million of that made up of trading in Fletcher Building.
Ryman, the retirement village operator with more than a decade of annual earnings growth under its belt, rose 2.7 percent to a record close of $6.58.
Investors may have been selling the stock to free up cash to buy rival Summerset Group, whose biggest shareholder Quadrant Private Equity reduced its holding at a discounted price last week, said James Smalley, a client adviser at Hamilton Hindin Greene. “Now that placement is put away, Ryman is bouncing back to new highs.”
Summerset fell 0.3 percent to $3.04. Quadrant sold shares at $2.90 to New Zealand and Australian investors via First NZ Capital last week and now holds a 23 percent stake.
Metlifecare, the smallest of the three listed retirement home operators, rose 0.3 percent to $3.43.
Fisher & Paykel Healthcare edged up 0.7 percent to $3.03 ahead of its results tomorrow. The company has already flagged a 17 percent gain in full-year earnings though the kiwi dollar has fallen since that forecast and investors will be looking for its comments on the outlook. It gets more than 50 percent of sales in US dollars.
Fletcher, the nation’s biggest building products and construction group, rose 1.8 percent to $8.43. The company affirmed its earnings guidance during an analyst briefing in Sydney today. The company is one of the most liquid on the NZX 50 and typically held by overseas investors and had fallen to the lowest in more than two weeks in recent days.
“Perhaps the bounce back in Fletcher is a sign foreign sellers have done their selling, for the short term anyway,” Smalley said.
SkyCity Entertainment Group rose 0.9 percent to $4.48 and is trading near its highest in almost five years as investors warm to its deal to build a convention centre in Auckland in exchange for more gambling concessions.
Property for Industry rose 1.5 percent to $1.36 after its plan to merger with Direct Property was deemed fair by independent valuers.
NZX, the stock market operator, fell 2.7 percent to $1.42 and Chorus declined 2.2 percent to $2.46.
Ecoya rose 1.1 percent to 90 cents after announcing it would change its name to Trilogy, the name of its skincare products range.
Telecom fell 0.6 percent to $2.40.