And PGG Wrightson halts trading after surprise boardroom ouster.
Precinct Properties NZ led the S&P/NZX 50 index lower as the commercial landlord resumed trading after raising $285 million in a discounted placement to institutional investors, while managing to keep its nose above both the offer price and its net tangible asset valuation.
Power companies were mixed after Genesis Energy raised its earnings guidance on favourable hydro flows and wind generation, while Meridian Energy noted increased storage across the nation’s dams.
Property developers Winton Land and CDL Investments both rallied after the Reserve Bank signalled plans to ease loan-to-value ratio restrictions, although Fletcher Building was on the red side of the ledger.
And trading of PGG Wrightson shares was halted after chair Garry Moore and his deputy Sarah Brown were unexpectedly dumped by the rural services firm’s two biggest shareholders Agria and Elders at today’s annual meeting.
The NZX50 fell 74.93 points, or 0.6%, to 13,276.99, with 34 stocks declining, 12 gaining and four unchanged. Turnover across the main board was $137.9 million, of which Fisher & Paykel Healthcare accounted for $19.9 million as the medical devices maker slipped 0.3% to $35.74.
Precinct led the benchmark lower, falling 6.8% to $1.24 when trading resumed after it raised $285 million in a discounted placement at $1.23 a share to firm up its balance sheet ahead of a heavy development programme. The commercial landlord will raise another $25 million through a share purchase plan.
“There’s a massive disincentive to raise capital when the share price is trading at a discount to NTA, and Precinct popped its head above the parapet,” said Jeremy Sullivan, an investment adviser at Hamilton Hindin Greene. “There’s a bit of pent up demand for the property stocks.”
Property companies were broadly weaker, as Property for Industry fell 4% to $2.42, Kiwi Property Group declined 3.2% to $1.06 on the day’s biggest volume of 6.1 million shares, and Goodman Property Trust dropped 3.2% to $2.14.
Energy companies were mixed, with Mercury NZ falling 2.4% to $6.43 and lines company Vector sliding 3% to $3.29. Meanwhile, Genesis Energy gained 1.6% to $2.50 after raising its earnings guidance on favourable hydro and wind generation conditions, while Meridian Energy gained 0.8% to $6.04 after reporting strong inflows into its catchments in September, with national hydro storage improving to 110% of the historical average. Contact Energy advanced 1% to $9.04.
KMD Brands posted the biggest gain on the day, up 3.4% at a four-month high 30.5 cents, after Statistics New Zealand figures showed retail spending on credit and debit cards fell in September, with hospitality the only sector to register a gain.
Briscoe Group increased 0.8% to $5.25 while Hallenstein Glasson Holdings slipped 0.4% to $9.66. Outside the benchmark index, Warehouse Group was unchanged at 80 cents and Michael Hill International rose 1.2% to 42 cents.
Fletcher Building slipped 1.4% to $3.17 after Real Estate Institute of New Zealand figures showed the housing market remained muted in September, with a decline in sales volumes and flat prices.
Meanwhile, the Reserve Bank announced plans to ease limits on lending to home buyers with small deposits. Property developers Winton Land and CDL Investments both rallied, up 0.4% at $2.26 and 1.3% at 80 cents respectively.
The kiwi dollar fell to 57.11 US cents at 5pm in Auckland from 57.32 cents at 7am and 57.35 cents yesterday.
Outside the benchmark index, PGG Wrightson’s shares fell 2% to $2.50 before trading was halted when chair Garry Moore and his deputy Sarah Brown were unexpectedly dumped by the two largest shareholders, Agria and ASX-listed Elders, when they were up for re-election at today’s annual meeting. Former director John Nichol was appointed to the board after the meeting and trading will resume on Wednesday.
Elders shares were up 2.2% in late trading on the ASX.
Pacific Edge slipped 0.5% to 18.9 cents after the bladder cancer test maker said lab throughput fell 9% in the September quarter, with US volumes down as the company shifts detect customers to its triage product.
Scott Technology surged 14% to $2.78 after the robotics automation systems maker said it’s signed $44 million of new contracts in the US and Brazil.
Smartpay rose 1.3% to $1.185 after shareholders approved the $1.20 takeover offer by Shift4 Payments.
And Restaurant Brands NZ rose 0.6% to $4.95. After local trading closed, Mexico’s Finaccess made its formal takeover offer at $5.05 a share. Across the Tasman, the dual-listed shares were up 1.6% at A$4.40 in late trading.
Reporting by Paul McBeth.
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