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Home / Business / Markets

Market close: Sky TV up 20% over past week; small gain for sharemarket

By Graham Skellern
NZ Herald·
31 Aug, 2021 05:40 AM5 mins to read

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Sky TV chief executive Sophie Moloney. Sky's shares rose 1.4c or 7.95 per cent to 19c. Photo / Supplied

Sky TV chief executive Sophie Moloney. Sky's shares rose 1.4c or 7.95 per cent to 19c. Photo / Supplied

The New Zealand sharemarket retreated after a busy and solid reporting season – and out of it came some renewed investor confidence in Sky TV.

The S&P/NZX 50 Index began falling at lunchtime and closed at 13,218.83, up 38.25 points or 0.29 per cent, after reaching an intraday high of 13,253.8. Trading was extended for the quarterly review of the MSCI Equity Indices and New Zealand stocks were largely unaffected.

There were 63 gainers and 75 decliners over the whole market, with 105.29 million shares worth $338.69 million changing hands after the MSCI rebalancing.

Matt Goodson, managing director of Salt Funds Management, said the market was mixed and quiet. There were a number of one or two per cent rises in stock for no compelling reasons.

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He said there was strong interest in the rebalancing of the FTSE EPRA Nareit Global Real Estate Index this week, with Argosy Property being admitted and possibly Stride and Vital Healthcare as the capitalisation and liquidity of constituents is being lowered.

Argosy was up 1c to $1.65; Vital Healthcare slipped 0.005c to $3.30; and Stride was unchanged at $2.62. The property stocks have been trading strongly lately.

Sky Network Television climbed 1.4c or 7.95 per cent to 19c and has risen more than 20 per cent over the past week. It is still a distance away from its two-year high of 60.5c.

Sky TV set a 2022 operating earnings (ebitda) guidance of $115m-$130m after an improved 2021 result. An analyst said the company continues to produce positive free cash flow but key issues still remain - stabilising its customer base and control over its programming costs.

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Contact Energy told the market it will be supplying 10MW of renewable electricity to a data centre being developed near the Clyde Dam by UK digital infrastructure company Lake Parime.

Goodson said the announcement confirmed a data centre was being built down south and it's interesting to see there are other uses for electricity than solely aluminium.

Contact was up 11c to $8.15. Meridian increased 12c or 2.34 per cent to $5.25, Vector gained 6c to $4.22 and Mercury was down 15c or 2.21 per cent to $6.65.

Market leader Fisher and Paykel Healthcare was up 36c to $33.10; Freightways increased 11c to $12.80; Port of Tauranga picked up 7c to $7.47, Fletcher Building rose 22c or 3.03 per cent to $7.49; South Port New Zealand climbed 27c or 3.31 per cent to $8.90; and PGG Wrightson gained 13 or 3.49 per cent to $3.85.

NZX was up 3 to $1.84; medicinal cannabis firm Rua Bioscience increased 2c or 5.6 per cent to 41.5c; and high-tech manufacturer Rakon gained 2c or 2.06 per cent to 99c.

Synlait fell 3c to $3.30; a2 Milk was down 8c to $6.03; The Warehouse Group declined 9c or 2.37 per cent to $3.71; Serko shed 10c to $8; Scales Corporation lost 13c or 2.53 per cent to $5.01; and Marsden Maritime Holdings decreased 8c to $6.22.

A fall in mussel demand is holding back Sanford's expected increase in performance in the second half, though the demand for wild-caught seafood and salmon is rising. Sanford told the market the significant impacts from higher supply chain costs and freight reliability is continuing, and its share price fell 13c or 2.84 per cent to $4.45.

Transtasman chemicals business DGL Group, which listed in May, gained 1c to $2.57 after telling the market its annual results exceeded the prospectus forecast. For the year ending June, revenue was 9 per cent to A$196.5m ($203.99m), operating earnings (ebitda) increased 47 per cent to A$28.1m and net profit rose 134.6 per cent to A$11.3m.

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Online personal lender Harmoney, another recent listing, fell 7c or 3.4 per cent to $1.99 after reporting a loss of $27m on revenue of $39.14m for the year ending June. Harmoney has 700,000 customers, a group loan book of $501m (including $135m from Australia), and loan originations for the second half of the financial year increased 260 per cent.

Delegat Group has appointed Pamu (Landcorp Farming) chief executive Steven Carden as its new chief executive, starting January 31. Delegat's share price was down 25c to $14.55.

Scott Technology declined 5c to $2.83 after announcing the sale of its superconducting magnets business HTS-110 to a partnership comprising investment fund Booster Tahi LP, venture capital fund Matu, and HTS-110 chief executive Donald Pooke.

Utility software firm ikeGPS rose 3c or 2.94 per cent to $1.05 after attracting A$5.2m in its oversubscribed Share Purchase Plan. The firm has now raised A$23.6m including its earlier share placement for business growth.

Wellington Drive Technologies has now made three million energy-efficient ECR 2 motors. Its share price was unchanged at 12.4c.

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