MARKET CLOSE: SLI listing boosts tech stocks, NZX gains

Article – BusinessDesk

May 31 (BusinessDesk) – New Zealand shares gained, paced by tech companies Xero and Diligent Board Member Services, after the 19 percent stag of SLI Systems on debut attracted investors to web-based firms.MARKET CLOSE: NZ shares gain as SLI listing boosts tech stocks; Xero, Diligent gain

By Paul McBeth

May 31 (BusinessDesk) – New Zealand shares gained, paced by tech companies Xero and Diligent Board Member Services, after the 19 percent stag of SLI Systems on debut attracted investors to web-based firms.

The NZX 50 index rose 40.84 points, or 0.9 percent, to 4511.35. Within the index, 25 stocks gained, 17 fell and eight were unchanged. Turnover was a bigger than normal $339 million.

Gold miner OceanaGold was the biggest gainer on the day, up 7.7 percent to $2.37.

Website search engine designer SLI jumped 28 cents to $1.78 on its NZX debut today in the first of several technology-based stocks set to join the stock exchange in coming months. That demand spilled over into fellow software-as-a-service providers Xero and Diligent, which climbed 5.7 percent to $14 and 6.6 percent to $8.20 respectively.

“It was a very good day for them to come on the market because both Xero and Diligent are performing well,” said Grant Williamson, a director at Hamilton Hindin Greene. “These companies like Xero are not earning a profit at the moment but people see huge potential down the track and they are buying the stock on the back of that.”

Phone company and ISP retailer Telecom gained 1.3 percent to $2.31, and pay-TV operator Sky Network Television advanced 2.6 percent to $5.85.

Ebos Group, which announced a $1.1 billion acquisition of Australian pharmaceutical distributor Symbion this week, climbed 1.9 percent to $10.80, and Williamson said investors are keen on the purchase.

“Ebos has a fantastic track record of growth themselves which seems a very good story and people are backing the company to produce the goods on this acquisition,” he said.

Guinness Peat Group was the biggest decliner, down 6.4 percent to 44 cents after updating analysts on its potential pension liability. The UK Pension Regulator is looking at whether GPG should provide more support to the Coats’ retirement schemes.

Metlifecare fell 3.6 percent to $3.26 after it completed a $70 million placement to institutional investors. The retirement village operator sold 22.6 million shares at $3.10 apiece, and plans to repay debt with the cash raised.

Port of Tauranga fell 0.4 percent to $14.29 after chairman John Parker announced his retirement in October.

Turners & Growers was unchanged at $1.60 after fruit marketer controlled by Germany’s BayWa said it would buy out management shareholders Deliva unit. T&G bought the remaining 30 percent for $25.8 million.

AWF Group was unchanged at $3.15 after managing director Simon Hull sold down his controlling stake in the contract labour firm to 58 percent from 68 percent. Hull’s family interests sold 2.5 million shares at $2.90 each, a discount of 7.9 percent.

Shares in PGG Wrightson plunged 19 percent to 25 cents, a day after the rural services company announced the departure of managing director George Gould later this year.

Tenon climbed 10 percent, adding to yesterday’s 16 percent gain, after the wood mouldings maker said it may return to profit this year as the US housing market picks up. Controlling shareholder Rubicon was unchanged at 30 cents.

(BusinessDesk)

Content Sourced from scoop.co.nz
Original url