New Zealand shares were in the red in the earlier part of today due to anxiety around the Italian election but managed to finish the day in the green.
The S&P NZX 50 index rose 12 points to 8647, on turnover of $189 million.
Fat Prophets head of research Greg Smith says the market hasn’t taken too kindly to company results that are in line with expectations lately, with A2 and Fisher & Paykel Healthcare shares dropping despite increased profits.
That trend continued today as software solution provider Gentrack shares fell 6.71% to $6.95 despite reporting a net profit after tax of $8.4m. Mr Smith says the company is performing very well overseas.
“Then again the shares have had a good run this year and perhaps the market was looking for more,” Mr Smith says.
Stride Property & Investment Management also reported solid results today. Profit after income tax was $95.3m, outperforming guidance of $35.7m. This time the market did respond as expected.
Stride shares gained 0.56% to $1.78.
“Investors are appreciating the transition into property management,” Mr Smith says.
Australia and New Zealand Banking Group (ANZ) shares fell 2.52% to $29.45 after the bank announced the sale of life insurance business OnePath Life NZ to Cigna Corporation for $700m.
Mr Smith says ANZ is continuing the “optimisation of its operations” and will make about $50m from the sale.
Spark shares gained 1.79% to $3.70 after the company announced it will refund customers who have overpaid for services dating back about seven years.
Mr Smith labels the move a PR initiative, which investors seemed to like.
“It was a drop in the bucket dollar-wise,” he says.
Auckland International Airport shares also gained 1.53% to $6.65. Mr Smith says whether or not its facilities are first class, the airport is a “high-quality” stock.
Yesterday Orion Health reported a full-year loss of $40.4m, 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 to lift shares, which shares fell 2.9% to 67c.
Today however, its shares had a turnaround, jumping 4.48% to 70c as investors digested the takeover rumour.
“It remains to be seen if there is some fire among the smoke,” Mr Smith says.
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