NZ shares rise in subdued Christmas trading

Retirement village operators continued to be buoyed by prospect of Metlifecare takeover. Photo / File

New Zealand shares rose in shortened holiday trading, as retirement village operators continued to be buoyed by the prospect of Metlifecare's takeover.

The S&P/NZX 50 Index increased 95.55 points, or 0.8 per cent, to 11,642.78. Within the index, 31 stocks rose, 11 fell, and eight were unchanged. Turnover was $31.3 million in a shortened trading session that closed at 1.30pm.

Markets were relatively quiet, with no stocks trading on more than a million shares, ahead of the two-day Christmas holiday.

Retirement village operators were stronger for a second day as the few active investors remained upbeat about the sector's outlook given the prospect of Metlifecare getting a takeover offer high enough to convince shareholders to sell. Its board rejected a $6.50 per share indicative offer. The shares were halted yesterday at $6.38.

Ryman Healthcare rose 4.4 per cent to $16.80, Summerset Group advanced 1.8 per cent to $8.50, and Arvida Group increased 1.7 per cent to $1.83. Oceania Healthcare was unchanged at $1.23.

"The retirement village sector is going gangbusters since the potential takeover of Metlifecare," said Peter McIntyre, an investment adviser at Craigs Investment Partners.

"The board told them to come back with a higher offer and it looks like their going to do just that."

Auckland International Airport was the most traded stock, up 2.2 per cent at $9.20 on a volume of 511,000 shares, less than half its 90-day average of 1.1 million. Spark New Zealand rose 1 per cent to $4.445 on a volume of 412,000 shares, compared to its 3.1 million average.

Argosy Property led the market higher, up 4.4 per cent at $1.44 with 208,000 shares traded, less than half its 525,000 average.

NZX posted the day's biggest decline, down 2.3 per cent at $1.30 with just 703 shares traded, well off its 194,000 average.

Restaurant Brands New Zealand extended its gain, up 1.7 per cent at $13.32. The fastfood operator yesterday announced a US$73m ($110.1m) acquisition giving it a foothold in California with 70 KFC and Taco Bell outlets.

McIntyre said the acquisition was at a good multiple for Restaurant Brands and was part of the growth story its majority shareholder – Finaccess – pursued when it mounted its partial takeover of the business last year.

Fisher & Paykel Healthcare rose 0.4 per cent to $22.48 and is poised to lead the benchmark index higher this year, up almost 73 per cent in 2019.

Sky Network Television is down 58.9 per cent so far this year, the biggest decline of the year. The stock rose 1.3 per cent to 76 cents today.