MARKET WRAP: NZ shares rise: Serko up, Evolve down

Travel software maker Serko and Evolve Education shares went in opposite directions in response to guidance updates.
Hamilton Hindin Greene investment adviser Tom McBride says it was a reasonably flat day on the market.
Hamilton Hindin Greene investment adviser Tom McBride says Serko got a 'nice boost' today.

New Zealand shares rose today as Serko and Evolve Education shares went in opposite directions in response to guidance updates.

The S&P NZX50 index fell 0.71 points to 8,922.09, on turnover of $127 million.

Earlier today, travel software maker Serko announced it has signed a Letter of Intent with Flight Centre Travel Group and raised its full-year 2019 revenue growth guidance range to 20-30% above FY18 (from 15-30%).

“That’s a nice little boost for Serko. It is still working through the arrangement and we would expect a further update at the annual general meeting on August 22,” Hamilton Hindin Greene investment adviser Tom McBride says.

Serko shares gained 3.64% to $2.85.

Evolve Education Group confirmed “credible” takeover interest today but also downgraded its trading performance on lower occupancy numbers.

It expects underlying earnings (operating ebitda) for full-year 2019 to be in the order of $3m-5 million down compared to last year’s $21.6m.

Evolve shares fell 12.5% to 56c.

Contact Energy shares gained 5c to $5.77. Today it announced it is selling its LPG gas business Rockgas to an associate of First Gas for $260 million.

That follows Contact’s announcement last December, that it was selling its Ahuroa gas storage facility for $200m to First Gas, a company controlled by Commonwealth Bank of Australia and which owns the former Natural Gas distribution network.

Yesterday New Zealand Oil & Gas released quarterly activities and cashflow reports for the three months to 31 March 2018. The company has reported a cash balance $98.6m steady revenue from production.

New Zealand Oil & Gas shares gained 1.74% to 58c.

Metro Performance Glass shares fell 2.3% to 85c. Its net profit in the year to March 31 fell 16% to $16.3 million, although sales – including the first 12 months of trading from acquisition Australian Glass Group – rose 10% to $268.3m.

Fonterra’s annual result and New Zealand’s labour data statistics will be out tomorrow. 

Reporter
Tags: