Retirement village operators had a mixed response to legislative tweaks.
New Zealand’s S&P/NZX 50 index was one of the laggards across Asia, with a widespread selloff led by Vital Healthcare Property Trust as the medical property landlord accepted extra subscriptions from retail investors in its capital raising to bring management inhouse.
Index heavyweights dragged the bourse lower, with Ebos Group sliding on an unusually large volume while Fisher & Paykel Healthcare, Meridian Energy and Infratil were all on the red side of the ledger.
Retirement village operators had a mixed response to the government’s plans to tweak the law governing their relationship with residents, as Oceania Healthcare nudged higher while Ryman Healthcare and Summerset Group Holdings declined.
And Fonterra Shareholders’ Fund units gained after the dairy exporter reported a 5.7% increase in first-quarter profit, buoyed by the soon-to-be-sold Mainland consumer division.
The NZX50 fell 66.92 points, or 0.5%, to 13,515.62, with 22 stocks declining, 20 gaining and eight unchanged. Turnover was $162 million, of which Ebos Group accounted for $44.5 million, most of which came from a single trade of 1.5 million shares at $27.85 apiece. The healthcare products maker ended the session down 1.6% at $28.05
Among other heavyweight companies dragging the local bourse lower, Fisher & Paykel Healthcare declined 0.5% to $38.20, Meridian Energy fell 1.2% to $5.65 and Infratil slipped 1.8% to $11.65.
New Zealand’s top 50 index was one of the weaker performers across Asia, with Australia’s S&P/ASX 200 index up 0.1% in late trading, while Japan’s Nikkei 225 jumped 1.6% and Hong Kong’s Hang Seng dipped 0.2%. The kiwi dollar rose to 57.68 US cents at 5pm in Auckland from 57.49 cents yesterday, and traded at 87.50 Australian cents from 87.38 cents.
Vital Healthcare led New Zealand’s benchmark index lower, sinking 4.6% to $1.89 after the hospital landlord closed its $30 million unit purchase plan oversubscribed and accepted an extra $15 million. The units were sold in the offer at $1.91 apiece.
Fonterra Shareholders’ Fund units advanced 0.4% to $7.849 after the dairy exporter said it expects to make a capital return to shareholders and unitholders of $2 per security in February from the sale of its Mainland consumer business.
The dairy exporter said first-quarter profit rose 5.7% to $278 million, although stripping out the Mainland unit, earnings from continuing operations fell 6%, which Fonterra put down to the timing of sales.
“They’re starting to see some softening in dairy prices, with the narrowing of the farmgate milk price,” said Jeremy Sullivan, an investment adviser at Hamilton Hindin Greene. “It’s been a good year for farmers, all things considered.”
Among companies shedding rights to dividends, Hallenstein Glasson Holdings fell 3%, or 29 cents, to $9.39 after giving up rights to its 30.5 cent dividend, while Kiwi Property Group declined 2.3%, or 2.5 cents, to $1.055, ahead of its 1.4 cents per share return. Green Cross Health decreased 1.7%, or 2 cents, to $1.13 after shedding rights to a 3 cent dividend.
Retirement village operators were mixed after the government announced plans to tweak legislation governing the relationship with residents, putting a greater onus on improving the transparency of legal documents and setting a 12-month deadline for funds to be repaid once a unit is vacated.
Summerset Group Holdings fell 2% to $12.25 and Ryman Healthcare slipped 0.3% to $2.90 and Oceania Healthcare gained 1.2% to 87 cents.
Fletcher Building rose 2% to $3.53 after Statistics New Zealand figures showed a 1.5% increase in the value of construction work put in place in the September quarter, with residential construction growing at a faster clip than economists expected and offsetting a larger contraction in commercial work than anticipated.
Among other materials firms, Vulcan Steel decreased 0.7% to $8.04, Metro Performance Glass was unchanged at 4.9 cents and Steel & Tube Holdings rose 3.3% to 63 cents, while residential developers were weaker as Winton Land dropped 5.5% to $1.90 and CDL Investments slipped 1.3% to 79 cents.
KMD Brands posted the biggest gain on the day, up 5.6% at 28.5 cents, while Napier Port Holdings advanced 3.1% to $3.64.
Air New Zealand was unchanged at 59.5 cents after the E tū union withdrew its Dec 8 strike notice for short haul cabin crew to allow for more negotiations. New strike notices have been issued for Dec 18 if a settlement can’t be reached.
Outside the benchmark index, Delegat Group was unchanged at $4.73 after the winemaker reaffirmed annual earnings guidance at today’s annual meeting, saying it’s responding to the US tariff regime by increasing prices and that the oversupply of wine in New Zealand is expected to take another two or three years to get back into balance.
Enprise Group rose 2.9% to 54 cents after the IT investment firm said it plans to raise $900,000 at 45 cents a share in a one-for-10 rights issue. The company told shareholders at yesterday's annual meeting an equity raising was in the works to bolster working capital, support growth for its Kilimanjaro Consulting unit and lift investment in iSell to support a push into the US.
AoFrio gained 2%, or 0.2 of a cent, to 10 cents after the refrigeration systems firm set out a plan to chase an aspirational revenue target of $300 million by the end of the decade.
Pacific Edge was unchanged at 16 cents after the cancer detection firm appointed former investment banker Simon Flood to the board, and signalled he’ll take over the chair from Chris Gallaher after the next board meeting on Dec 18.
Reporting by Paul McBeth.
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