NZ sharemarket flat as index newcomers shine

Top 50 additions Gentrack and Turners Automotive had strong rises while the New Zealand sharemarket lacked direction and finished flat.

Monday, December 4th 2023, 6:35PM

by BusinessDesk

It was a familiar pattern for the S&P/NZX 50 Index, falling in the morning and recovering in the afternoon. The index closed at 11,367.81, up 0.3 points but no percentage change, after reaching an intraday low of 11,311.02.

There were 81 gainers and 53 decliners over the whole market on light trading of 27.22 million shares worth $87.61m.

Utilities software company Gentrack and vehicle dealer Turners, both being added to the NZX 50 index on December 18, rose 39c or 6.35 to a five-year high of $6.58 and 11c or 2.355 to $4.80, respectively.

Matt Goodson, managing director of Salt Funds Management, said the aggressive trading in Gentrack and Turners was “a bit surprising given they were expected to join the top 50. Overall, it was a mixed market.”

Synlait Milk, down 8c or 6.065 to $1.24, and Pacific Edge, up 0.002c or 2.085 to 9.8c, are coming out of the NZX 50.

Gentrack continues to set the pace after also producing a strong annual result and upgrading its earnings for the current 2024 financial year. It has risen from $5.16 in a week and is now up 1,415 over the past 12 months. Gentrack is in sight of its all-time high of $7.30, achieved on May 30, 2018.

Tower falls

Insurer Tower, down 1c to 58c, provided interest after telling the market it is reviewing its ownership structure and has engaged financial adviser Goldman Sachs NZ.

Goodson said Bain Capital bought a 205 stake in Tower after Suncorp failed to get Commerce Commission permission to become involved.

“Tower has cleaned up its business in Christchurch and installed a successful IT system. It’s time to look around and see if someone else can be a higher-value owner.

“Maybe there is some corporate interest in Tower. It will be interesting over the next two to three months to see if anything emerges,” Goodson said.

Online travel provider Serko climbed 16c or 3.865 to $4.31 and has risen 555 over the past year.

Fellow software firm Vista Group was up 8c or 5.;845 to $1.45. Freightways gained 13c to $8.34; Mainfreight collected 57c to $68.07; a2 Milk rose 15c or 3.625 to $4.29; Ryman Healthcare was up 6c to $5.41; Michael Hill added 2c or 2.335 to 88c; and Heartland Group increased 5c or 3.145 to $1.64.

Genesis Energy was up 3.5c to $2.405. Genesis has confirmed full-year operating earnings (Ebitdaf) guidance at $430m, in the 2025 financial year $500m, and between 2026 and 2028 in the mid-high $500m. The current year's dividend is forecast at 14c a share.

Fisher and Paykel Healthcare was down 47c or 1.975 to $23.34; Mercury Energy dropped 14c or 2.245 to $6.12; Manawa declined 6c to $4.46; Seeka shed 12c or 4.625 to $2.48; and Oceania Healthcare decreased 3c or 4.175 to 69c.

The Warehouse Group declined 4c or 2.255 to $1.74; Scales Corp shed 8c or 2.625 to $2.97; CDL Investments fell 3c or 3.6155 to 80c; Allied Farmers the same, down 3c or 3.615 to 80c; and PGG Wrightson gave up 6c to $3.40.

Sky TV decreased 7c or 2.485 to $2.75; AFT Pharmaceuticals was down 8c or 21.385 to $3.28; and Comvita shed 5c or 25 to $2.45.

Property for Industry, down 2c to $2.20, has sold a property occupied by Move Freight in Blenheim for $7.45m, just below its December 2022 valuation of $8m. Goodman Property Trust declined by 3.5c to $2.405.

Medicinal cannabis company Rua Bioscience, down 0.005c or 3.455 to 14c, is exploring alternative supply partnerships after Cann Group gave 12 months’ notice to terminate its contract. Rua said there had been recent quality issues with Cann’s export products.

Tags: Market Close