NZ shares fall; Sky TV slides to record low

Sky Network Television led the market lower, sliding 6 per cent to a record-low 79 cents. Photo / File

New Zealand shares joined the lull across Asia-Pacific markets as investors grow increasingly pessimistic about China-US trade relations. Ryman Healthcare fell on disappointment that its earnings forecast wasn't stronger.

The S&P/NZX 50 Index declined 17.33 points, or 0.2 per cent, to 10,958.16. Within the index, 35 stocks fell, 11 rose, and four were unchanged. Turnover was $152.7 million.

Stocks across Asia were weaker on fears an initial trade deal between China and the US would slip into next year. Investors had hoped it would be done in early November. Australia's S&P/ASX 200 Index fell 0.8 per cent in afternoon trading, while Hong Kong's Hang Seng was down 1.6 per cent and Singapore's Straits Times Index declined 0.9 per cent.

"Asian markets are off a bit more than we are. We're holding up reasonably well in comparison. There were negative leads out of the US with people a bit wary around what happens next in the Trump administration," said Grant Davies, an investment adviser at Hamilton Hindin Greene.

Ryman Healthcare fell 0.7 per cent to $14.24. The country's biggest retirement village operator and developer today reported an 11.1 per cent increase in profit, bolstered by unrealised gains on the value of its property portfolio. Underlying profit rose 6.2 per cent and it signalled annual earnings would rise by as much as 17 per cent.

Davies said the result was solid, but that guidance was at the bottom end of the range analysts were predicting.

"There's potential for some analysts to adjust their numbers down slightly," he said.

The result came a day after rival Metlifecare said it had been approached by a credible bidder with a sub-par, highly conditional indicative takeover offer. The board said it has started discussions with the would-be buyer. The shares rose 1.2 per cent to $5.80.

Summerset Group declined 0.4 per cent to $7.40 and Arvida Group was down 1.2 per cent at $1.59.

Sky Network Television led the market lower, sliding 6 per cent to a record-low 79 cents. Some 685,000 shares changed hands, less than its 90-day average of 1.1 million.

Westpac Banking Corp fell 2.9 per cent to $26.63, extending its decline after it was yesterday accused of breaching Australian laws to prevent money laundering and terrorism financing. Australia & New Zealand Banking Group was down 1.2 per cent at $26.30.

Trustpower fell 4.5 per cent, or 34 cents, to $7.34 after shedding rights to a 17-cent dividend. Z Energy was down 3.6 per cent, or 19 cents, having given up rights to a 16.5-cent dividend.

Contact Energy was the most traded stock on a volume of 4.4 million shares, well up on its 1.2 million average. It rose 2.5 per cent to $6.85.

Meridian Energy declined 0.7 per cent to $4.32 with 3.5 million shares traded and Kiwi Property decreased 0.3 per cent to $1.545 on a volume of 3.1 million.

Of other stocks trading on volumes of more than a million shares, Spark New Zealand was unchanged at $4.47, Mercury NZ fell 1.5 per cent to $4.70, Goodman Property Trust declined 1 per cent to $2.085 and Fletcher Building rose 0.6 per cent to $5.23.

Port of Tauranga was up 0.8 per cent at $6.50 with 325,000 shares traded, more than twice its 137,000 average. Rival Ports of Auckland today released critiques of analysis that supported plans to shift the city's port operations to Northport near Whangarei.

Outside the benchmark index, Northport shareholder Marsden Maritime Holdings fell 1.2 per cent to $6.90, Napier Port was down 1.8 per cent at $3.36 and South Port New Zealand increased 0.4 per cent to $6.94.

Pacific Edge shares were halted at 16.5 cents after the bladder cancer test maker reported a wider first-half loss and said it planned to raise another $20m to tide it over until it started breaking even on a cash flow basis. Of that, $7m would be raised in a placement at 15 cents, and the remainder in a renounceable rights issue at 10 cents apiece.

"There have been a number of times where it looked like the last capital raising with promises of cash-flow break even and revenue improvements just around the corner," Davies said.

"Shareholders will need to either plug more cash in or sell their rights."

AFT Pharmaceutical rose 2.7 per cent to $3.08 after it reported first-half revenue growth of 22 per cent and a net profit of $9.9m, due largely to a one-off gain from absorbing full ownership of a joint venture.