A broker's research note sharply dented leading retirement village operator Ryman Healthcare's momentum as the New Zealand sharemarket drifted sideways.
The S&P/NZX 50 Index lost 10.61 points or 0.09 per cent to 12,449 after following last week's trading trend of rising in the morning, having a poor afternoon session and then taking another spurt in the last half hour.
There were 77 gainers and 64 decliners over the whole market on volume of 48.17 million share transactions worth a steady $156.55 million.
Ryman Healthcare, the country's biggest retirement village operator, fell 73c or 5.26 per cent to $13.15, after leading broker Jarden set a target share price of $11.60. The broker talked about the threat of a slowdown in the housing market and the impact on Ryman's unit sale prices, and therefore its capital gains.
Other retirement village operators Summerset Group Holdings was up 4c to $12.55, Arvida Group slipped 1c to $1.81, and Oceania Healthcare was unchanged at $1.33.
Synlait Milk was down 5c to $3.05 after now forecasting a loss of $20m-$30m for the 2021 financial year, following nine straight years of profit. Synlait said its banking syndicate continues to be supportive and has granted a waiver of relevant covenants in the present financial year. It does not intend to undertake a capital raising.
The downgrade affected one of Synlait's main customers, a2 Milk, which fell 17c or 2.82 per cent to $5.86 after reaching an intraday high of $6.14. Jeremy Sullivan, investment adviser with Hamilton Hindin Greene, said there was relief that Synlait didn't have to raise money. "While they are in breach (of financial covenants), there's no drama."
Auckland International Airport, which is looking for a new chief executive, fell 23c or 3.09 per cent to $7.22, back to the level of late March. Market leader Fisher and Paykel Healthcare gained 20c to $34, and Mainfreight increased 52c to $73.80.
The Warehouse Group was cut 16c or 4.38 per cent to $3.49 after Foodstuffs sold its 9 per cent shareholding late on Friday at a price of $3.26 a share. Personal lender Harmoney hit a new low after falling 9c or 5.14 per cent to $1.66.
Meal kit company My Food Bag can't catch a break, falling 6c or 4.23 per cent to a low of $1.36 after last week meeting the prospectus forecast for its annual financial result. Sullivan said My Food Bay was pitched as a growth stock at the time of listing, and since then growth shares and the New Zealand market have come back. "My Food Bag's share price has been impacted by the direction of the market."
The energy companies had a good day. Contact was up 11c to $7.81; Mercury rose 8c to $6.57; and Genesis gained 5c to $3.385; Trustpower increased 4c to $8.30; and Vector picked up 5c to $4.05.
Freightways rose 15c to $11.45; Chorus increased 19.5c or 3.05 per cent to $6.595; Serko gained 10c to $6.60; Sanford climbed 15c or 3.41 per cent to $4.55; Turners Automotive was up 19c or 5.25 to $3.81; Vista Group collected 7c or 3.29 per cent to $2.20; and Restaurant Brands was up 26c or 1.94 per cent to $13.63.
Precinct Properties will shortly begin redeveloping One Queen Street in Auckland for $305m, with a luxury hotel, premium office space and food and beverage facilities. The five Green Star project will be completed in late 2023, Precinct's share price slipped 0.005c to $1.62.
Kiwi Property, owner of Sylvia Park shopping centre, turned a loss of $186.7m into a net profit of $196.52m for the year ending March. The profit included a revaluation gain on its $2.62 billion portfolio of $99.8m compared with a $289.9m fall in the previous year. Kiwi is paying a final dividend of 2.95c a share on June 24, and its share price rose 2c or 1.67 per cent to $1.22. Argosy Property was up 2c to $1.52.
AFT Pharmaceuticals was down 3c to $4.67 after reporting a drop in net profit from $127m to $7.8m on revenue of $113.1m, up 7 per cent, for the year ending March. AFT is forecasting operating earnings of $18m-$23m for the 2022 financial year, having arranged 20 new licensing agreements for its Maxigesic pain relief medicine.
Transtasman chemicals business DGL Group listed on the NZX as well as the ASX, taking the number of stocks on the local market to 187. Melbourne-based DGL, which had revenue of $180.1m in the 2020 financial year, raised $100m at $1 a share and there was one trade worth $4400, taking the share price to $1.10.