Market close: Pushpay investors ponder takeover as NZX50 marches on

Photo / NZME

Pushpay Holdings was the most traded stock on New Zealand's market today as investors weighed up the merits of the $1.53 billion takeover offer.

The S&P/NZX 50 index increased 208.89 points, or 1.9 per cent, to 11,338.43.

Across the main board, 100 stocks rose and 35 fell. Turnover was busy at $252.5 million, of which Pushpay accounted for $73.8m. The faith-based services software developed rose 5 per cent to $1.25 when it resumed trading today, 9 cents shy of the $1.34 offer lobbed in by shareholders BGH Capital and Sixth Street, which collectively own 20.3 per cent of Pushpay's shares.

Hobson Wealth Partners director Brad Gordon said the offer price was disappointing and felt like an admission the company was struggling to reach its full potential.

"It feels a little like waving the white flag as a listed vehicle," he said.

Companies offering reliable dividends led the market higher, with broadband utility Chorus rising 5.9 per cent to $8.31, electricity generator-retailer Mercury NZ advancing 5.2 per cent to $5.82, and Goodman Property Trust up 5.1 per cent at $2.07.

Property investment firms were among those to post gains on the final day of the month, with Kiwi Property Group rising 2.3 per cent to 90.5 cents, Property for Industry increasing 2 per cent to $2.50, and Stride Property up 1.3 per cent at $1.60.

Peter McIntyre, an investment adviser at Craigs Investment Partners, said property stocks had suffered in the past 12 months as interest rates increased, meaning the yield they offered through reliable dividends wasn't as attractive, and describing the selloff as "brutal".

"They are fundamentally good businesses," he said.

Exporters were also among companies to gain across the wider board, with components maker Rakon advancing 8 per cent to $1.21 and AoFrio, formerly Wellington Drive Technologies, climbing 6.1 per cent to 14 cents after reporting an 18 per cent increase in third-quarter revenue.

The NZ dollar traded at 58.19 US cents at 3pm in Wellington from 58.08 cents on Friday, with the trade-weighted index at 69.62 from 69.51 last week.

Travel software provider Serko rose 4.9 per cent to $2.98. Retirement village operator and developer Arvida Group posted the biggest decline on the NZX 50, falling 2.3 per cent to $1.26.

Among the decliners, Synlait Milk fell 1.6 per cent to $3.12 and A2 Milk decreased 0.9 per cent to $5.80. NZ Rural Land Company slipped 0.9 per cent to $1.06 and automated meat processing system maker Scott Technology fell 3.4 per cent to $2.81.

McIntyre said investors would focus on local economic data including employment figures and building permits, and central bank decisions in Australia, the UK, and the US. He also noted several annual meetings for NZ firms this week.

"It has the potential to be quite a choppy week," he said.

ASB senior economist Chris Tennent-Brown said in a note that the employment figures would probably show an "extremely tight" labour market, with a modest increase in jobs and potentially a record low unemployment rate of 3.2 per cent.

- BusinessDesk