MARKET WRAP: NZ shares fall on mixed company results

Hamilton Hindin Greene investment adviser Tom McBride.

Hamilton Hindin Greene investment adviser Tom McBride says the spotlight was on Orion Health.

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New Zealand shares had a slight fall today, after a mixed bag of company results announcements.

The S&P NZX 50 index was down nine points to 8635 on turnover of $132 million. 

Hamilton Hindin Greene investment adviser Tom McBride says the spotlight was on Orion Health’s “disappointing” result.

The company reported a full-year loss of $40.4 million, which was in line with analyst expectations. Last year, it lost $33m.

Later in the day, it said it is in talks with potential buyers but that wasn’t enough to keep it above water as its shares fell 2.9% to 67c.

“I’d be surprised if anyone is looking to buy its stock at the moment,” Mr McBride says.

Mainfreight shares rose 1.17% to $26.05 after the logistics provider announced its revenue was up 12.2% to $2.62 billion, in line with expectations. Its net profit rose by 6% to $107.9 million but, while it was another record year, profit wasn’t as dramatic as last year’s bumper 16% increase.

Mr McBride says Mainfreight remains a “steady performer and core portfolio stock” for many New Zealand investors.

Goodman Property shares gained 0.7% to $1.43. Mr McBride says the company is reallocating capital, which involves the divestment of a number of office buildings and shifting its focus to the industrial side of its portfolio.

The company is selling its Wynyard Quarter office assets to Blackstone for $635m. 

Turners Automotive Group also had a strong result, reporting a 33% rise in profit to $23.4m for the financial year.

The market responded kindly. Turners shares gained 2.05% to $2.99 but have fallen 23.9% over the past year. Mr McBride says the result was partly due to the growth of its insurance business Autosure.

Struggling chicken producer Tegel’s shares also gained 3.57% to $1.16 after it announced Philippines-based Bounty Fresh is proceeding with a takeover bid at $1.23 a share.

Bounty first announced a proposed 100% takeover of Tegel on April 26 and the company’s 45% private equity owner, Affinity, has already agreed to accept the offer. 

Pacific Edge shares fell 15.63% to 27c. “There were some positive things said a few years ago with regards to moving into the US. Unfortunately, those results haven’t come through yet,” Mr McBride says.

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Alas in Wonderland just for the Pacific Edge and Orion directors - what have they all been doing?

"It's very good jam," said the Queen.
"Well, I don't want any to-day, at any rate."
"You couldn't have it if you did want it," the Queen said. "The rule is, jam to-morrow and jam yesterday – but never jam to-day."
"It must come sometimes to 'jam to-day'," Alice objected.
"No, it can't," said the Queen. "It's jam every otherday: to-day isn't any otherday, you know."
"I don't understand you," said Alice. "It's dreadfully confusing!"

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