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Market close: Xero at new record, Ryman gains as shares rise

Xero rises 3.3% to $15.80, valuing the cloud-based accounting company at $1.81 billion.

Wed, 11 Jul 2018

New Zealand shares rose, with Xero resuming its ascent to a new record, leading gains among this year's soarers, including retirement village operators Ryman Healthcare, Metlifecare and Summerset Group.

The NZX 50 Index rose 14.465 points, or 0.3 percent, to 4462.102. Within the index, 23 stocks rose, 19 fell and eight were unchanged. Turnover was $123 million.

Xero rose 3.3 percent to $15.80, valuing the cloud-based accounting company at $1.81 billion. Some investors have been buying the shares in expectation the company will reach its target of one million customers worldwide from about 157,000 currently.

Ryman rose 2.9 percent to $6.30, Metlifecare gained1.6 percent to $3.28 and Summerset was up1.4 percent to $2.90.

Telecom, which has a dividend yield of 7.4 percent, rose 1.3 percent to $2.275. Transport group Mainfreight rose 1.3 percent to $10.55.

"Investors are willing to be a bit patient but they're not aggressive sellers," says Nigel Scott, senior investment adviser at Craigs Investment Partners. "The market is still providing that level of yield you can't get from the bond market."

Cavalier, the carpet maker, fell 2.4 percent to $1.63 after saying annual earnings will be at the bottom end of guidance and signalling a $1 million cash hit as it consolidates its tufting operation.

Hallenstein Glasson Holdings, the clothing chain that gave a profit warning last week as a late summer crimped sales of winter stock, declined 0.8 percent to $4.94.

Kathmandu Holdings, the outdoor equipment retailer in the midst of a crucial mid-year sale, dropped 0.4 percent to $2.57.

Among other retailers, Warehouse Group rose 0.8 percent to $3.68 and Restaurant Brands gained 0.7 percent to $2.85. Pumpkin Patch rose 1 percent to $1.

Steel & Tube Holdings, which sells steel building products and should stand to benefit from the rebuild of Christchurch, rose 2 percent to $2.40. Fletcher Building edged up 0.1 percent to $8.29.

AWF Group, which supplies temporary workers, fell 0.3 percent to $2.95 and has gained 23 percent this year.

Infratil, the diversified investment group, rose 1.8 percent to $2.27.


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Market close: Xero at new record, Ryman gains as shares rise