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Share Market Update

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The NZX50 index comprising of New Zealand’s 50 largest, eligible stocks listed on the Main Board of the NZX by float-adjusted market capitalization, increased by 0.93% over a period of one month between 1st May 2017 to 1st June 2017. The growth was comparatively subdued, considering in the previous month (Apr-May) the index has seen an increase of 2.17%. Several factors contributed to the slower pace of growth in May, such as a general volatile nature of the Global stock market subject to political uncertainty surrounding Donald Trump’s presidency and the old adage of “Sell in May and Go Away”.

May Highlights

  • The Air New Zealand Board is appointing former Prime Minister John Key as a Director effective from September 1.
  • Genesis Energy agreed to acquire the retail LPG business of Todd Corp’s Nova Energy unit for $192 million, a move that will give New Zealand’s biggest electricity retailer almost a fifth of that market.
  • Commerce Commission rejected a proposal from media companies NZME and Fairfax Media to merge their New Zealand operations.
  • Oceania Healthcare raised $200 million through an initial public offering (IPO) of 79 cents per share.
  • Abano Healthcare, the Australasian radiology and dental centre operator, expects to deliver a profit of between $9.7 million and $10.5 million in the year ending May 31, compared with a $28.4 million profit in 2016.
  • Z Energy more than tripled its annual profit after acquiring Chevron New Zealand’s Caltex and Challenge! Brands with profits jumping to $243 million from $64 million and revenue climbing to $3.87 billion from $2.52 billion.
  • Trustpower lifted annual profit 37 percent to $94 million from $68.5 million in 2016.
  • Ryman Healthcare, New Zealand’s biggest listed retirement village operator, announced plans for a sixth village in Australia, a $100 million development in the Victorian city of Geelong.
  • Pushpay Holdings, whose mobile payment app allows churches to raise money from parishioners, increased Annualised committed monthly revenue (ACMR) to US$50.5 million from US$19.6 million and expects to achieve US$72 million in ACMR and break even on a monthly cash flow basis by the end of calendar 2017.
  • F&P Healthcare posted an 18 percent gain in full-year profit, meeting its guidance amid record annual sale of $894 million.
  • Mainfreight posted a 16 percent gain in full-year profit to $101.5 million, surpassing $100 million for the first time, led by earnings growth in New Zealand and Australia.
  • Xero, the cloud-based accounting software firm, narrowed its full-year loss as revenue gained and now has 1,035,000 subscribers, after adding 318,000 over the past year.
  • Fonterra Cooperative Group lifted its expected payout for the current 2016/17 season to $6.15 per kilogram of milk solids from its previous forecast of $6/kgMS, and also raised its initial forecast for the upcoming 2017/18 season to $6.50/kgMS. It confirmed its forecast earnings per share range of 45 to 55 cents for the 2017 financial year and retained its target for a full-year dividend of 40 cents per share.
  • Turners Automotive Group lifted annual profit 13 percent to $17.6 million in the year ended March 31, from $15.6 million the previous year.
  • Comvita shares slumped after Ministry for Primary Industries said the myrtle rust fungal disease was found in Waikato. Screen Shot 2017-06-12 at 3.38.41 PM