Market close: Ebos slumps after no deal struck; Turners and Vista rise

Turners Automotive surged 33c or 7.76 per cent to $4.58 after reporting a record six months ending September. Photo / 123RF

Ebos Group slumped more than 6 per cent after pulling out of discussions on a billion-dollar acquisition but the New Zealand sharemarket was holding steady.

The S&P/NZX 50 Index fell early to 11,099.34 but it recovered strongly to close at 11,169.8, up 5.38 points or 0.05 per cent, while the five-day rally on Wall Street ended.

There were 66 gainers and 58 decliners on the local market, with 28.13 million shares worth $116.87 million changing hands.

Greg Smith, head of retail with Devon Funds Management, said markets in the United States were disappointed that the Federal Reserve minutes gave no indication of a cut in interest rates anytime soon.

The Dow Jones Industrial Index declined 0.18 per cent to 35,088.29 points; S&P 500 was down just 0.2 per cent to 4538.19; and Nasdaq Composite shed 0.59 per cent to 14,199.98.

Smith said on the local market, investors were equally disappointed Ebos was not proceeding with a deal. The transaction would have made Ebos a bigger company on the NZX board and that would have been good for capital markets.

Ebos, a leading Australasian medical products distributor, resumed trading for the first time since Thursday and fell $2.45 or 6.35 per cent to $36.15 after telling the market it had been in discussions on a potential strategic transaction related to its animal care segment. These discussions have now concluded and a transaction will not proceed.

It was speculated that Ebos was lining up Australian pet care company Greencross, carrying a value of $3.5 billion.

In a trading update, Ebos said it has had a pleasing start to the 2024 financial year, with underlying earnings up 8.8 per cent and revenue 8.2 per cent for the four months ending October.

Turners Automotive surged 33c or 7.76 per cent to $4.58 after reporting a record six months ending September. Revenue was up 16 per cent to $214.23m, operating earnings (ebit) increased 16 per cent to $30.2m and net profit was $18.5m, up 8 per cent. Turners is paying a second-quarter dividend of 6c a share on January 26.

The auto retail division traded strongly, with increased sales, and is targeting a 10 per cent market share. Turners said the full year is looking like being well ahead of the 2023 financial year, which recorded $389.63m in revenue and $32.56m profit.

Market leader Meridian Energy increased 9c or 1.8 per cent to $5.10; Infratil rose 21c or 2.13 per cent to $10.06; Napier Port gained 5c or 2.17 per cent to $2.35; Port of Tauranga was up 11c or 2.12 per cent to $5.31; and Seeka added 15c or 5.77 per cent to $2.75.

Vista Group gained 4c or 2.84 per cent to $1.45 after announcing a five-year agreement with leading European chain Pathe Cinemas, which will install the Vista Cloud enterprise platform into its 129 sites with more than 1300 screens.

Scott Technology, which recently swatted off a takeover offer, rose 19c or 5.74 per cent to $3.50 after providing a positive outlook to its shareholders at the annual meeting.

Oceania Healthcare, down 2c or 2.82 per cent to 69c, reported half-year revenue of $131.61m, up 8 per cent, with a 13 per cent increase in sales to 255 including a 38 per cent uplift in new sales of retirement units and care suites. Total assets increased to $2.7b and operating cash flow was $48m, up 53 per cent.

Among other retirement village stocks, Ryman Healthcare, reporting next week, declined 23c or 4.17 per cent to $5.29 on trade worth $18.85m, and Summerset Group, which is coming out of the MSCI Index, was down 13c to $9.62 on trade of $11.36m.

Manawa Energy was down 9c or 1.94 per cent to $4.54; Comvita declined 7c or 2.33 per cent to $2.93; a2 Milk declined 11c or 2.53 per cent to $4.24; Serko shed 7c to $4.12; and KMD Brands was down 2c or 2.47 per cent to 79c.