SkyCity best performer as shares drop

SkyCity Entertainment Group gained on its strong annual results. Photo / 123RF

New Zealand shares fell, led lower by Pushpay Holdings' continued weakness, while SkyCity Entertainment Group gained on its strong annual results.

The S&P/NZX50 Index dipped 3.64 points, or 0.04 per cent, to 8,872.09. Within the index, 21 stocks fell, 20 rose and nine were unchanged. Turnover was $126.5 million.

"The market has been moving in and out of positive territory today," said Peter McIntyre, investment adviser at Craigs Investment Partners.

"Weak trade data in China led the Shanghai index down but the rest of Asia seems to have shrugged that off. We have continued to trade with above-average volume."

Pushpay Holdings led the index lower, down 4.6 per cent to $3.53. The stock has dropped 15 per cent since August 1, when the company delivered first-quarter revenue within guidance and reshuffled its senior management after another abrupt executive exit.

"Post placement it has been significantly weaker, it just hasn't really gathered any support and has been trading lower on good volume," McIntyre said.

"The guidance was within expectations but it maybe has disappointed some participants."

A2 Milk Co fell 1.4 per cent to $10.40, Fisher & Paykel Healthcare Co dropped 1.2 per cent to $14.63, and Fletcher Building declined 1.2 per cent to $6.82.

Property For Industry dropped 1.2 per cent to $1.72. It lifted its dividend as strong portfolio activity drove higher revenue. Net profit jumped but largely due to a one-off in the prior period.

The Auckland-based company said net profit in the six months to June 30 was $29.6m, or 5.93 cents a share, versus a loss of $5.6m in the prior year, or 1.25 cents. It noted, however, the prior year's loss was largely due to the $42.9m cost of buying out its management contract.

NZX declined 0.9 per cent to $1.08. It won't force off-market transactions to meet a new minimum crossing threshold as long as they improve price transparency and will go ahead with a new pricing structure from October.

SkyCity Entertainment Group was the best performer, up 2.5 per cent to $4.08. It increased full-year earnings more than forecast as its high-roller business recovered and its flagship Auckland casino improved. It expects "modest growth" in earnings in the current financial year.

"The report was ahead of expectations and guidance, with international business being the main driver - it was a solid result, driven by a good fourth quarter," McIntyre said.

"The dividend is unchanged, that may increase but all in all it was a pretty satisfying result for those that have invested in Skycity."

Ryman Healthcare rose 2.1 per cent to $12.59, Arvida Group gained 1.6 per cent to $1.31, and Auckland International Airport advanced 1.3 per cent to $6.835.

Outside the benchmark index, Steel and Tube Holdings dropped 5.5 per cent to $1.38. It says it attracted several new investors in the first tranche of a deeply discounted $80.9m capital raise.The Lower Hutt-based company sold 18.1 million shares at $1.15 apiece, raising $20.8m

"It possibly had to [raise at a discount] to get interest from both institutions and retail investors," McIntyre said.

"There is a saying that debt is cheaper than equity - but if your debt levels are high, equity can be your only option."