Retirement stocks under pressure on housing fears
The S&P/NZX 50 Index declined 19.78 points, or 0.2 percent, to 9,787.30. Within the index, 16 stocks fell, 24 gained, and 10 were unchanged. Turnover was $143.9 million.
Summerset led the market lower, down 3.8 percent at $5.55 on a volume of 1.2 million shares. Its 90-day average is 281,000. Metlifecare fell 3.2 percent to $4.58 and Ryman Healthcare declined 2.5 percent to $11.70.
Last week, Summerset warned that first-quarter unit sales were down in part because of slowing property markets in Auckland and Christchurch. Rapid gains in house prices in recent years have been a tailwind for the sector, which is busy building new villages in anticipation of the needs for an ageing population.
"Uncertainty around the housing market is coming home to roost with a lot of the premium starting to disappear for some of those stocks, particularly Metlifecare and Summerset," said Grant Davies, an investment adviser at Hamilton Hindin Greene.
Click the button below to subscribe and will have free unlimited access for a limited time to full article and all other articles on the site.
You will also be able to comment on articles on Good Returns.
