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NZ shares down, Tegel, Orion, Sky suffer

NZ Newswire logoNZ Newswire 15/12/2016 Sophie Boot
Sky TV dropped 4.2 per cent to $4.10. © BROKER/REX Shutterstock Sky TV dropped 4.2 per cent to $4.10.

New Zealand shares fell again, led lower by Tegel Group Holdings which cut its guidance, Orion Health Group and Sky TV.

The S&P/NZX50 Index dropped 49.24 points, or 0.7 per cent, to 6,748.62. Within the index, 35 stocks fell, 13 rose and three were unchanged. Turnover was $156.9 million.

Tegel Group Holdings was the worst performer, down 16.8 per cent to $1.29, a record low. The poultry group, which was taken public by private equity firm Affinity Equity Partners in April, posted a 4 per cent decline in first-half earnings as margins were squeezed by a glut of chicken keeping domestic prices low.

Tegel expects annual underlying ebitda of between $75m and $85m, having previously projected proforma earnings of $84m for the 2017 year.

"They well and truly missed expectations and gave guidance well below the product disclosure statement document so they've been thumped," said Rickey Ward, NZ equity manager at JBWere.

"You miss PDS numbers, markets never take kindly to that and they've been rapped across the knuckles as a result. Their guidance was predicated on no deterioration in the current environment, so one would assume that's a big ask given you've got a bit of an oversupply led from around the world."

Sky TV dropped 4.2 per cent to $4.10. It was the worst performer on the index on Wednesday after cutting its 2017 earnings guidance citing rising content costs, and falling revenue and subscribers.

Orion Health Group fell 7 per cent to $2 while Intueri Education dropped 10 per cent to 2.7 cents. On Wednesday, Orion said it had signed an expanded agreement with an American client.

A2 Milk Co continued to decline, down 2.4 per cent to $2.08. It began declining on Monday on the news that Australian formula producer Bellamy's had gone into a trading halt on the ASX.

Freightways gained 2.9 per cent to $6.84, Auckland International Airport rose 2.3 per cent to $6.30, and Kathmandu Holdings advanced 1.6 per cent to $1.92.

Restaurant Brands New Zealand rose 0.6 per cent to $5.14. The fast-food retailer lifted sales 35 per cent in the third quarter, with most of the increase coming from the 42 Australian KFC stores the company bought in April.

Outside the benchmark index, Veritas Investments dropped 9.1 per cent to 20 cents and Pushpay Holdings gained 3.1 per cent to $1.33.

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