Flat day for the NZX50 as negative year beckons

New Zealand’s sharemarket is petering out in the run-up to the Christmas break and faces its first negative year in a decade as investors continue to grapple with the latest twists and turns of the covid-19 pandemic.

Thursday, December 23rd 2021, 7:12PM

by BusinessDesk

The S&P/NZX 50 Index ended the day largely flat, down 2.51 points, or 0.02%, at 12,862.71. Turnover was relatively quiet at $105.8 million across the main board as trading desks wind down for the Christmas break.

In late trading Thursday, the NZX50 was still down 1.45% for the year and “we need a few good days to get to a positive position for the year,” said Grant Davies, an investment adviser at Hamilton Hindin Greene. A positive end would mark 10 years of annual gains.

Fast-food operator Restaurant Brands posted the day’s biggest decline, down 3.6% at $14.26. Other hospitality operators were also weaker, with Savor siding 13% to 47 cents and Good Spirits Hospitality declining 2.7% to 7.1 cents.

Pacific Edge fell 3% to $1.29, giving back what’s been another strong month for the cancer diagnostics firm, with it up 4.9% so far in December. Stock market operator NZX was another to give up some of December’s gain, falling 2.2% to $1.85.

Travel stocks were mixed in response to studies indicating the omicron variant poses a lower risk of severe disease and hospitalisation than delta, although the World Health Organisation says it’s too early to draw conclusions on its severity.

Travel software developer Serko posted the day’s biggest gain, up 4.3% at $6.99, Air New Zealand advanced 1.3% to $1.525 and Vista Group International rose 0.5% to $2.25. Meanwhile, Tourism Holdings declined 1.7% to $2.95 and Auckland International Airport slipped 0.7% to $7.57.

Healthcare stocks were also mixed in response to the fast-rising number of omicron cases.

Ebos Group gained 1.6% to $39.80 while Fisher & Paykel Healthcare slipped 0.3% to $32.85. Volumes were light, however, and gains in the local dollar may have weighed on the latter stock.

The New Zealand dollar rose to 68.08 US cents at 3pm in Wellington from 67.58 cents yesterday. The trade-weighted index was at 73.05 from 72.70 yesterday.

The Christmas period frequently sees the NZ dollar push higher on very light liquidity. The currency is up about 1.1% since Monday's close.

While omicron has yet to take hold in NZ, Australia reported 8,205 new cases, its highest daily caseload since the pandemic began.

Among other top gainers, SkyCity Entertainment Group climbed 2.7% to $3.07. Investors may have been cheered after the company announced it had become a major shareholder in a European online gaming provider, in particular, given “SkyCity has had a rough run over the last 18 to 24 months,” said Davies.

The deal with Gaming Innovation Group (GiG) will see SkyCity provide $40 million of new equity to help fund GiG’s purchase of Sportnco.

Gentrack increased 1% to $1.06. Yesterday, the company announced the appointment of John Priggen as chief financial officer from February.

Mainfreight lifted 1.1% to $91 after managing director Don Braid bought 10,000 shares on market at $90.01.

Retirement village operators were stronger following news aged care provider Heritage Lifecare’s private equity owner entered into a $291m sale-and-leaseback arrangement with ASX-listed Centuria Capital.

Ryman Healthcare rose 1.1% to $12.20, Summerset was up 0.8% at $12.95, and Arvida increased 0.5% to $1.95. Aged care provider Oceania Healthcare declined 0.8% to $1.31.

Tags: Market Close