Market close: NZX takes late dive, Ryman and F&P Healthcare fall

The New Zealand sharemarket fell nearly one per cent. Photo / File

Retirement village operator Ryman Healthcare – one of the more favoured stocks – suffered the most when the New Zealand sharemarket fell nearly one per cent in a late dive.

The S&P/NZX 50 Index moved in a narrow range for most of the day and then fell more in the last hour of trading to finish at 12,441.81, down 115.32 points or 0.92 per cent. A total of 45.5 million shares worth $161.7 million changed hands, and there were 6o gainers and 69 decliners over the whole market.

Ryman Healthcare reported its latest half-year result and though it wasn't too bad, its share price fell 38c or 2.45 per cent to $15.13.

Shane Solly, portfolio manager with Harbour Asset Management, said it was a soft end to the week, and it's all about rotation of stocks and financial results.

"The rotation is a tough one. There's positive news on vaccine development one day and people are trying to invest in stocks that will benefit. And then the next day it's different with information that Covid cases are surging. It's a reminder that there's still some time before a vaccine gets in the market."

The market will get a clearer direction next week on how the business world is performing with nine companies reporting and Fletcher Building holding its annual meeting.

Solly said Ryman produced a good result, despite its underlying profit being 14 per cent down. The company had done a great job during the Covid crisis and it will take a little longer to see good growth come through. "I think the market is taking time to digest the result."

Ryman had a 9.1 per cent increase in revenue to $423.19m for the six months ending September and its underlying profit fell 14.2 per cent to $88.38m, from $102m. Its net profit, however, rose 12.8 per cent to $212.4m, which include property revaluation gains.

Ryman is paying an interim dividend of 8.8c a share on December 18, and it is currently developing 12 new villages in New Zealand and Australia. Ryman sold 121 new occupation rights worth $90m, down from 229 worth $160.7m in the previous first half.

Fisher & Paykel Healthcare, which reports on Wednesday, fell 42c to $33.02, while a2 Milk rose 7c to $14.61. Another retirement village operator Summerset Group Holdings fell 24c or 2.23 per cent to $10.51.

The energy stocks again came under pressure – Mercury falling 8c to $5.80, Meridian down 8.5c to $5.885, Contact slipping 2c to $7.72, and Genesis losing 10c or 3.18 per cent to $3.15.

Mainfreight finished the week down $1.45c or 2.42 per cent to $58.50, Port of Tauranga fell 12c to $7.15, and Sanford declined 14c or 2.77 per cent to $4.91.

Serko recovered 30c or 5.66 per cent to $5.60, Restaurant Brands gained 26c or 2.18 per cent to $12.20, and Air New Zealand was up 2.5c to $1.705.

AFT Pharmaceuticals slumped 25c or 4.81 per cent to $4.95 despite delivering a six-month result of increased revenue and profit. Pushpay Holdings, which is making a four-for-one share split by November 27, fell 10c to $7.19.

Personal lending firm Harmoney, which had a mixed listing on the NZX and ASX markets the day before, rose 13c or 3.64 per cent to $3.70 – just above its listing price of A$3.50 ($3.68).

Heartland Group Holdings said it is reassessing the valuation of its 8.44 per cent stake in Harmoney – which may result in an increase in the fair value of the investment – in preparation for its latest half-year financial result. Heartland's share price was unchanged at $1.39.