New Zealand Stock Markets

New Zealand shares fell as Metro Performance Glass sank to a record low on speculation it may drop out of the S&P/NZX 50 Index. Fisher & Paykel Healthcare, Fletcher Building and a2 Milk were among decliners while Kathmandu and Z Energy rose.

The NZX 50 fell 43.32 points, or 0.5 percent, to 8,284.34. Within the index, 24 stocks declined, 17 rose and nine were unchanged. Turnover was $184 million.

MetroGlass dropped 2.5 percent to 79 cents, a record low close. They sold in the 2014 IPO for $1.70 a share, allowing private equity owners Crescent Capital and Anchorage Capital to reap about $230 million selling down their holdings.

Like Fletcher and Steel & Tube, MetroGlass has grappled with capacity constraints in the construction industry, which has squeezed margins.

In October it announced a strategic review after a series of guidance downgrades and chief executive Nigel Rigby stepped down in December. March quarter reweightings for the NZX 50 may be announced as soon as this week.

Fletcher dropped 1.8 percent to $6.49 although Ward said chief executive Ross Taylor "has been talking a very credible story" about trying to ringfence losses at the company's B+I unit while completing a strategic review of the whole group.

Steel & Tube declined 0.5 percent to $2.08.

A2 fell 1.5 percent to $12.56, having soared 58 percent this year. Ward said it has continued to drift after its "extreme run" and also on news that management had been selling shares.

Synlait Milk decreased 0.1 percent to $7.49 and honey products exporter Comvita fell 1.3 percent to $7.40.

Westpac Banking Corp declined 2 percent to $31.95 and Australia & New Zealand Banking Group fell 1.9 percent to $30.13, reflecting the lenders' weaker stock across the Tasman.

F&P Healthcare fell 3.3 percent to $13.25 and Ryman Healthcare fell about 1 percent to $10.40. Kathmandu rose 2.7 percent to $2.28 and Z Energy rose 1.7 percent to $7.

Marsden Maritime Holdings was unchanged at $5.60 after chief executive Graham Wallace said he will leave the company at the end of this month.

Monday, 20 November 2017

New Zealand Shares up, Metro Glass gains on 1H results

New Zealand Stock Markets

New Zealand shares rose on Monday, led by Kathmandu Holdings ahead of its annual meeting while Metro Performance Glass gained on its first-half earnings.

The S&P/NZX50 Index gained 27.82 points, or 0.3 per cent, to 8089.8. Within the index, 30 stocks rose, 14 fell and six were unchanged. Turnover was $128 million.

"There's not a lot going on, volumes are pretty light and there are no major leads from offshore, it's just one of those treading water days really," said James Smalley, senior advisor at Hamilton Hindin Greene.

"We're in the middle of a mini reporting season at the moment, and results out later this week from Fisher & Paykel Healthcare and Ryman Healthcare should give the market a bit more to get its teeth into. There's just an absence of macro or micro events to drive the market today."

Fisher & Paykel rose 2.4 per cent to $13.88, ahead of its first-half earnings Tuesday. Ryman gained 0.3 per cent to $9.25; its first-half results are due on Thursday.

Kathmandu Holdings led the index higher, up 5.3 per cent to $2.60. The annual meeting is in Melbourne on Friday. The stock has gained 27 per cent this year.

Metro Performance Glass rose 4.6 per cent to 92c. The company posted a 2.6 per cent gain in first-half profit to $11.8m, in line with its guidance last month, and gave a forecast for a little changed full-year result.

Synlait Milk rose 4.1 per cent to $7.39, while A2 Milk Co, which Synlait supplies and whose share price movements it usually follows, dropped 1 per cent to $7.84. A2's annual meeting is in Auckland on Tuesday.

Xero rose 2.4 per cent to $33.80, continuing to bounce back from a recent sell-off which came after it announced its planned de-listing from the NZX.

Contact Energy was the worst performer, down 2.5 per cent to $5.41.