Sun sets on 'staggering' year for NZX50 share market

Investors can kick back and reflect on a year on which the NZX50 has risen 31.5 per cent. Photo / Emma Corbett

New Zealand shares fell, with blue-chip stocks such as Meridian Energy and Auckland International Airport following Australia's market lower.

Retirement village operators were stronger as Metlifecare's $1.5 billion takeover offer from Asia Pacific Village Group, owned by Sweden's EQT Fund Management, stoked demand for its rivals.

The S&P/NZX 50 Index decreased 45.67 points, or 0.4 per cent, to 11,556.45. Within the index, 23 stocks fell, 18 rose, and nine were unchanged. Turnover was $81.1 million, of which Metlifecare accounted for $31.2 million.

The local market fell in tandem with Australia's S&P/ASX 200 Index, which was down 0.4 per cent in afternoon trading. Both markets have enjoyed strong gains this year with Australia's benchmark up 20.3 per cent and the NZX50 up 31.5 per cent.

"It's been a pretty staggering year to be fair - it's unbelievable how good it has been," said Chris Timms, an investment adviser at Craigs Investment Partners.

Timms said he didn't anticipate much year-end tinkering by institutional investors because the gains had been so strong, and most portfolio reallocations had already been made. "I don't expect a great deal - it's only a half-day of trading tomorrow."

Meridian Energy led the market lower, down 3.1 per cent at $5.02 on a volume of 361,000 shares, well off its 90-day average of 2 million.

Mercury NZ fell 1.7 per cent to $5.04, Contact Energy decreased 1.2 per cent to $7.17 and Trustpower declined 1 per cent to $7.33.

Auckland International Airport declined 2.2 per cent to $8.80. Across the Tasman, Sydney International Airport dropped 4.1 per cent in afternoon trading at A$8.80 on the ASX.

Metlifecare posted the day's biggest gain, up 6.7 per cent at $6.81 on a volume of 4.6 million shares, the most traded stock and well up on its 275,000 average.

The board yesterday signed a scheme implementation agreement with Swedish buyout firm EQT for a $1.5 billion takeover at $7 a share. The New Zealand Superannuation Fund and other shareholders holding about 42 per cent have agreed to sell into the offer.

Other retirement village operators and aged care providers gained. Oceania Healthcare rose 3.9 per cent to $1.35 with 932,000 shares changing hands. Ryman Healthcare rose 2.1 per cent to $17.20, Summerset Group was up 1.7 per cent at $9.05 and Arvida Group increased 1 per cent to $1.95.

Timms said some Metlifecare investors preferred to take a higher price now and leave some money on the table. That lets them buy into a rival company now, rather than wait the extra time and find they're competing with other Metlifecare shareholders when looking to invest elsewhere.

If the takeover goes ahead, it won't be the best start to 2020 for the stock market operator, which has struggled to attract new listings, Timms said. NZX was unchanged at $1.34.

Outside the benchmark index, Napier Port rose 7.1 per cent to $4.25. The port operator listed in August in a partial privatisation, with Hawke's Bay Regional Council selling 45 per cent of the company at $2.60 a share.

Cannasouth, the other new listing this year, fell 1.7 per cent to 59 cents, still up on the 50 cents the shares were sold at in a June initial public offering.

Blis Technologies soared 20.4 per cent, or 1.1 cents, to 6.5 cents with 2.6 million shares traded. The stock market operator issued a "please explain" notice to the probiotic maker over the increase in price since December 27.

Chief executive Brian Watson said Blis complied with the listing rules.
BusinessDesk