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Retirement village stocks were weaker. Summerset Group was down 34c or 3.35 per cent to $9.80. Photo / NZME
Retirement village stocks were weaker on further evidence of a downturn in the housing market and the New Zealand sharemarket retreated with a fall of more than half a per cent.
The S&P/NZX 50 Index
There were 103 decliners and 36 gainers on the main board and trading volumes were improved with 27.39 million share transactions worth $1089.27 million.
The New Zealand Real Estate Institute’s September data showed house prices were down 1.5 per cent month on month and have fallen 11 per cent from their November 2021 peak.
Sales volume declined 6.9 per cent on monthly basis and 20.9 per cent on a yearly basis.
ANZ Research said the September data was weaker than “our forecast, presenting a touch of downside risk to our expectation that prices will fall 15 per cent in peak-to-trough terms. But given the 45 per cent rise over 2020/21, even a 20 per cent fall could be considered a ‘soft landing’.”
Retirement village operators Summerset Group was down 34c or 3.35 per cent to $9.80; Arvida fell 7c or 5.07 per cent to $1.31; Oceania Healthcare declined 1c to 90c; and Ryman Healthcare decreased 8c to $8.46.
Matt Goodson, managing director of Salt Funds Management, said the retirement sector has been weak because of the outlook for the housing market.
“House sales numbers are lower and there is a build-up of inventory. Investors are looking at what this means for the resale prices in the retirement villages, though up till now they have held up. But I guess investors are looking into the future,” he said.
Tourism Holding was the biggest mover of the day, rising 15c or 5.45 per cent to $2.90 after increasing its net profit guidance for the 2023 financial year to the top range of more than $30m, after previously forecasting $17m-$30.2m.
Tourism Holdings told the market that the first quarter performance exceeded expectations and there was greater certainty on upcoming rental revenue and increased rental yields for the New Zealand and Australia high (summer) season.
Fisher and Paykel Healthcare hit a new low, falling 25c to $18.40. Infratil continued to slide, down 16c or 1.91 per cent to $8.23; a2 Milk declined 11c or 1.77 per cent to $6.10; and Mainfreight shed 74c to $66.25.
Skellerup Holdings was down 11c or 2.13 per cent to $5.05; SkyCity declined 9c or 3.3 per cent to $2.64; Hallenstein Glasson decreased 7c to $5.23; and Seeka shed 16c or 4.06 per cent to $3.78.
Among the energy companies Contact was up 5c to $7.24, and Genesis was down 5.5c or 2.06 per cent to $2.615. In the property sector, Stride was down 5c or 3.11 per cent to $1.56, and Kiwi declined 2.5c or 2.78 per cent to 87.5c.
Meal kit company My Food Bag returned to its low after dropping 3c or 4.84 per cent to 59c. It has fallen nearly 50 per cent over the past 12 months.
Pacific Edge was down a further 1.5c or 3.23 per cent to 45c; T&G Global fell 11c or 4.07 per cent to $2.59; PGG Wrightson lost 10c or 2.27 per cent to $4.30; and Ventia Services declined 8c or 2.73 per cent to $2.85.
Bremworth was down 4c or 8.33 per cent to 44c; Harmoney decreased 4c or 5.26 per cent to 72c; Trade Window dropped 4c or 6.06 per cent to 62c; and Eroad declined 6c or 4.17 per cent to $1.38, now having fallen 77 per cent over the past year.
Briscoe Group was up 15c or 2.88 per cent to $5.35; AFT Pharmaceuticals rose 16c or 4.95 per cent to $3.39; Turners Automotive gained 9c or 2.58 per cent to $3.58; Smartpay added 2.5c or 3.57 per cent to 72.5; and AoFrio (formerly Wellington Drive Technologies) was up 0.003c or 2.36 per cent to 13c.
In the banking sector, ANZ gained 60c or 2.12 per cent to $27.75; Westpac increased 70c or 2.86 per cent to $25.15; and Heartland Group was down 3c or 1.79 per cent to $1.65.
NZX increased 3c or 2.59 per cent to $1.19 after it was announced that Rob Hamilton, a director of Westpac NZ, Tourism Holdings and Oceania Healthcare, will become its new chair, replacing James Miller in April next year.
Gentrack was up 1c to $1.65. The utilities software provider earlier upgraded its full-year guidance, lifting revenue 9 per cent to $125m and more than doubling operating earnings (ebitda), though off a low base.
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Staff shortages mean guests turned away and concern NZ won't offer quality experience.