“If it’s 50 basis points, then maybe there will be some relief but others will say ‘crikey, they haven’t done enough’. Bizarrely, the Reserve Bank is taking a three months holiday after this and why take a hiatus when events can evolve pretty rapidly at the moment,” he said.
Among the leaders, Auckland International Airport reached its highest level this year, rising 22.5c or 2.84 per cent to $8.14; Fisher and Paykel Healthcare increased 28c to $20.78; Spark was up 6.5c to $5.185; Chorus gained 11c to $8.22; Mainfreight added 35c to $70.05.
There was renewed buying interest in Ebos Group, up 42c to $41.11 on trade worth $27.48m, since it is joining the MSCI Small Cap Index at the end of the month. Ebos’ share price has moved from $35.65 in the past month.
Goodson said the Ebos inclusion wasn’t widely anticipated but the irony is that it makes the stock very liquid and it will likely go into other global indices next year. “You do get a cascading effect.”
Retirement village operator Ryman Healthcare continued to fall, down 18c or 2.36 per cent to $7.44 after revealing in its half-year result that debt had reached $3 billion on assets worth $12b.
Goodson said investors “are a little bit worried about the debt level. Companies like Ryman rely on occupier advances and bank debt, and when the housing market falls you do tend to get a capital blow-out. But Ryman is working hard to maximise their sales.”
Property companies Goodman Trust gained 4c or 1.95 per cent to $2.095; Property for Industry was up 3c to $2.41; Kiwi Property increased 1.5c to 91.5c; and Vital Healthcare Trust was down 4c to $2.345.
Manuka honey producer Comvita, up 3c to $3.23, told the market that sales at the November 11 Singles Day shopping festival in China were in line with forecasts and it was the sixth largest and only international brand recognised in the healthy foods category.
Comvita reiterated its full-year operating earnings (ebitda) growth is expected to be double digits. Inventory and debt is forecast to be “at elevated levels” through the 2023 financial year before reducing towards the $85m inventory target in the 2025 year.
Other gainers were Skellerup Holdings adding 11c or 1.95 per cent to $5.75; Tourism Holdings up 6c to $3.53; KMD Brands collecting 2c or 1.85 per cent to $1.10; Sanford increasing 7c to $4.24; and Heartland Group rising 7c or 3.95 per cent to $1.84.
In the energy sector, Contact fell 27c or 3.54 per cent to $7.35; Genesis decreased 4.5c to $2.66; Vector was up 12c or 2.89 per cent to $4.27; Mercury increased 6c to $5.72; and Manawa gained 10c or 1.98 per cent to $5.14.
Fletcher Building was down 8c to $5.09; Freightways shed 11c to $10.19; Gentrack declined 4c or 2.44 per cent to $1.60; Serko decreased 5c or 1.92 per cent to $2.55; and Smartpay shed 2.5c or 2.7 per cent to 90c.
Other decliners were Bremworth down 2c or 4.12 per cent to $4.65; Millennium & Copthorne Hotels NZ decreasing 8c or 4.1 per cent to $1.87; Move Logistics shedding 2c or 1.8 per cent to $1.09; Ventia Services down 5c to $2.75; South Port New Zealand discharging 15c or 1.81 per cent to $8.15; and NZ Automotive Investments falling 1.5c or 4.17 per cent to 34.5c.
Medicinal cannabis stocks Cannasouth was down 1.5c or 5 per cent to 28.5c, and Rua Bioscience also declined 1.5c or 6 per cent to 23.5c.
Metro Performance Glass was unchanged at 20.5c. Last week it told the market it is starting an organisational structure and manufacturing review that includes reducing costs. Metro expects first-half operating earnings (ebit) at about $5.6m and net debt $59m.
