Infratil rises 2.65%, helps NZ sharemarket outperform Australia – Market close

The NZX 50 outperformed its Australian counterpart.

With help from Infratil, the New Zealand sharemarket has gained to start the week.

The S&P/NZX 50 rose 0.44% to 13,281.140 points on Monday, with 26.9 million shares changing hands, worth $102.4 million.

Matt Goodson, the managing director of Salt Funds Management, highlighted that the local index had outperformed the ASX 200, which was down 0.35% an hour ahead of close.

However, on a year-to-date basis, the Australian benchmark is up nearly 8% compared to the NZX 50’s less than 2%.

Sticking with the ASX 200, Goodson noted that Ebos Group announced it had been added to that stock index late on Friday.

He said that there are varying estimates, but that the “largely expected” inclusion could lead to about 1.5 million shares being purchased by index-tracking funds.

The stock, which has fallen nearly $9 since it reported in late August, lost 0.62% on Monday to $30.65.

Infratil, which rose 2.65% to $12.40, was second in line in terms of volumes, registering $8.8m in value traded.

Goodson said the infrastructure investor had been upgraded by a broker in Australia but that nothing much else had happened to stimulate the move.

Among the day’s other gainers was Vital Healthcare Property, which lifted 1.86% to $2.19.

Goodson said the move looked to be related to rumours surrounding its inclusion on a separate stock index.

“There’s an increasing view that it may be added to a major global property index in the next couple of months, which could have quite an impact. That’s probably explained some of its move off the bottom, despite the woes of healthcare property stocks in Australia.”

Market announcements

Investore Property unveiled a package of initiatives that include buying the Silverdale Centre in Auckland for $114m.

The company momentarily went into a trading halt before announcing it would put the acquisition, a capital raise through convertible notes and changes to its management arrangements with Stride Property, to shareholders.

Goodson said Salt Funds had holdings in Investore and Stride Property.

“We’re certainly reserving our own view until we’ve seen all the information,” he said.

Investore shares were up 0.43% to $1.155, and Stride traded flat at $1.28.

Tourism Holdings (THL) shares rose 0.81% to $2.50 after it announced it would exit two Australian dealerships as part of an overhaul of its retail sales unit.

Shares in THL, dual-listed in New Zealand and Australia, were under pressure until a consortium comprising BGH Capital and the family interests of executive director Luke Trouchet made a buyout offer in June.

In August, the THL board rejected the consortium’s takeover offer of $2.30 per share, saying it believed the value of the company was worth more than $3 per share.

Retail rebound?

Forsyth Barr equity analysts Paul Koraua and Rohan Koreman-Smit released an investor note on Monday in which they said the listed retail sector is showing early signs of recovery after several difficult years.

Electronic card transactions data suggests consumer demand is stabilising, they said, adding that The Warehouse Group and Briscoe Group are best placed to benefit, though both remain under pressure from heavy discounting.

“For the upcoming September reporting season, we will be looking for updates on recent trading, promotional pricing activity, cost control, and capital management,” the analysts said.

The Warehouse Group fell 0.63% to 79 cents, and Briscoe Group dipped 0.71% to $5.62.

Hallenstein Glasson was similarly among the decliners, dropping 2.09% to $8.91.