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Kiwi shares rise as buyers flock back

NZ NewswireNZ Newswire 18/11/2016 Sophie Boot

New Zealand shares rose as buyers came back into the market, led upwards by Auckland International Airport and Ryman Healthcare while Kathmandu Holdings dropped.

The S&P/NZX 50 Index gained 43.19 points, or 0.6 per cent, to 6,857.85. Within the index, 25 stocks rose, 16 fell and 10 were unchanged. Turnover was $212.8 million.

"We are starting to see some retail bargain hunters coming into the market, I've noticed that with my own client base, investors are thinking that the Trump effect has slowed and things have settled down to some degree despite the earthquake and are keen to come from the buy side again," said Grant Williamson, director at Hamilton Hindin Greene.

Auckland International Airport led the index, up 3.3 per cent to $6.25. Williamson said it was a volatile stock which had been sold down early in the week amidst concerns about tourism in New Zealand following Monday's early morning 7.8 magnitude earthquake near Kaikoura, but has since more than regained what it lost.

Argosy Property rose 2.9 per cent to $1.05, Mercury gained 2.4 per cent to $3.035, and Vector advanced 1.9 per cent to $3.18.

Ryman Healthcare improved 1.9 per cent to $8.59. New Zealand's largest retirement village operator lifted first-half earnings and said it expects to report another record profit for the full year, as it inked higher sales and continues to expand. Underlying profit, which excludes fair value changes from its property portfolio, rose 9 per cent to $76.5 million in the six months ended Sept. 30 compared with the year-earlier period

"It was better than market expectations - although the company has a historical 15 per cent earnings growth target, the market wasn't expecting very much in its first half because of when the new villages are available for sale," Williamson said. "The second half should be a lot better but the first half was a lot better than the expected 5 or 6 per cent."

Kathmandu Holdings was the worst performer on the index, down 4.8 per cent to $1.79.

Comvita dropped 3.7 per cent to $9 and Tilt Renewables fell 2.4 per cent to $2.

Outside the benchmark index, Seadragon dropped 11 per cent to 0.8 cents and Tenon was unchanged at $2.60.

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