Market close: Summerset falls after reporting lower sales

Summerset Group declined 27c or 3.07 per cent to $8.52. Photo / Supplied

The New Zealand sharemarket opened the week in a lacklustre mood after the Easter break, with Summerset Group acknowledging tough trading in the retirement village sector.

The S&P/NZX 50 Index had a rocky session, falling in the morning and recovering in the afternoon to finish flat at 11,873.58, up 3.5 points or 0.03 per cent. The index traded within a range of 11,835.84 and 11,905.62 points.

There were 86 gainers and 48 decliners over the whole market, with 24.41 million shares worth $92.62m changing hands.

Jeremy Sullivan, investment adviser with Hamilton Hindin Greene, said the mixed indices in the United States gave little guidance to the local market.

“Maybe people are still digesting the 50 basis points increase in the official cash rate last week. The Reserve Bank is doing what it indicated with a cash rate of 5.5 per cent by May. Here it comes.

“The latest Chinese inflation data was slightly less than expected with the March consumer price index rising 0.7 per cent, and this could be a sign that the global economy may be reining in inflation,” Sullivan said. “This sentiment flowed through the Australian market, especially the major banks.”

The S&P/ASX 200 Index had risen 1.26 per cent to 7309.8 points at 6pm NZ time. ANZ increased 72c or 2.93 per cent to $25.30, and Westpac was up 71c or 3.07 per cent t5o $23.85 on the New Zealand market.

Summerset Group declined 27c or 3.07 per cent to $8.52 after reporting 210 sales in the March quarter, lower than the same period last year. The number included 115 new sales and 95 resales, and Summerset described it as a credible result given the tough market conditions. It expected a stronger second half of the financial year.

Summerset said the lower-than-expected 95 resales – 41 more are under contract - was related to timing with residents settling and moving in. “We are committed to working with our prospective residents to enable them to move into our villages easily and confidently while they complete the settlement of their homes,” the company said.

Summerset said 75 per cent of its new homes will be delivered in the second half, and this will represent 625 to 675 homes for the year.

Ryman Healthcare gained 8c to $5.38; Oceania Healthcare was up 2c or 2.78 per cent to 74c; and Arvida Group was unchanged at 98c.

Fletcher Building was active, rising 16c or 3.62 per cent to $4.58 on trade worth $7.78m. Spark gained 7.5c to $5.115, and Mainfreight collected 73c to $69.45.

Napier Port rose 11c or 4.25 per cent to $2.70; a2 Milk was up 6c to $6.15; Vulcan Steel increased 21c or 2.51 per cent to $8.58; Vista Group gained 3c or 2.34 per cent to $1.31; and Sanford added 11c or 2.72 per cent to $4.15.

Winton Land increased 5c or 2.59 per cent to $1.98; Pacific Edge rose 3.5c or 8.64 per cent to 44c; and CDL Investments was up 2c or 2.67 per cent to 77c.

In the property sector, Stride was up 3c or 2.33 per cent to $1.32; Kiwi gained 3c or 3.33 per cent to 93c; Goodman Trust was down 3c to $2.11; and Property for Industry declined 1.5c to $2.275.

Heartland Group, up 6c or 3.92 per cent to $1.59, is offering investors $75m worth of unsecured subordinated notes, with the initial interest rate fixed for five years and then reverts to a quarterly floating rate. The bond offer, which includes another $50m in oversubscriptions, is expected to open on Monday.

Chorus gained 2c to $8.45 after telling the market that total fibre connections increased 15,000 to 1.01 million in the third quarter and ultra-fast broadband now covers 72 per cent of its completed footprint. Auckland has 81 per cent uptake.

Market leader Fisher and Paykel Healthcare was down 27c to $26.73, Meridian declined 17.5c or 3.33 per cent to $5.125; Infratil shed 12c to $9.16; Skellerup Holdings fell 20c or 3.91 per cent to $4.91; and PGG Wrightson decreased 9c or 2.05 per cent to $4.30.

Other decliners were South Port NZ down 20c or 2.6 per cent to $7.50; AFT Pharmaceuticals shed 9c or 2.61 per cent to $3.36; NZME shedding 3c or 2.83 per cent to $1.03; Foley Wines down 4c or 2.99 per cent to $1.30; and Bremworth falling 4c or 10.53 per cent to 34c.

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