Ryman shares gain healthy shot in arm

• Author: Graham Skellern
• Published date: 25 January 2023
• Publication title: New Zealand Herald, The (Auckland, New Zealand)

The cautious S&P/NZX 50 Index traded steadily till a mid-afternoon fall to close at 11,932.92, down 15.8 points or 0.13 per cent after a morning high of 11,998.02

There were 70 gainers and 61 decliners over the whole market on volume of 29.5 million share transactions worth $110.55 million.

Matt Goodson, managing director of Salt Funds Management, said the market was getting more activity as people returned from holiday — and it was held back by Fisher and Paykel Healthcare and Ebos being flat.

“There was a large line of more than one million Ryman shares cleared on the market and the stock bounced after that.”

He said there was an element of cautiousness ahead of the December consumer price index release.

The United States markets rebounded on optimism the Federal Reserve would slow the pace of interest rate hikes, with recent data showing inflation was moderating.

The Dow Jones Industrial Average gained 0.76 per cent to 33,629.56 points; S&P 500 increased 1.19 per cent to 4019.81; and Nasdaq Composite was up 2.01 per cent to 11,364.41, having risen 8.58 per cent this year.

The Australian market continues to hum along, with the S&P/ASX 200 Index increasing 0.45 per cent to 7491.2 points at 6pm NZ time and a 100-day high.

At home, Ryman Healthcare — the country’s biggest retirement village operator — rose 33c or 5.72 per cent to $6.10 with 2.67 million shares worth $16.2m changing hands. Ryman has fallen more than 43 per cent in 12 months.

Goodson said investors were concerned about Ryman’s balance sheet and level of debt.

Fellow retirement stocks Summerset Group was up 19c or 1.96 per cent to $9.89, and Arvida gained 2c or 1.79 per cent to $1.14.

Fisher and Paykel Healthcare was down 14c to $25.20 on trade worth $23.1m, and Ebos Group declined 69c to $45.03.

Goodson said investors were weighing up against valuation whether Fisher and Paykel’s positive trading update was just a one-off.

Serko rose a further 15c or 6.67 per cent to $2.40 after its positive trading update; Mainfreight gained $1.35 or 1.91 per cent to $72; Gentrack climbed 17c or 6.3 per cent to $2.87; and Vector was up 9c or 2.09 per cent to $4.40.

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