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NZ stocks down as Orion tumbles 13pc

NZ Newswire logoNZ Newswire 30/05/2017

Perpetual Guardian was the brainchild of Andrew Barnes, who began buying trustee firms in 2013. © AAP Images Perpetual Guardian was the brainchild of Andrew Barnes, who began buying trustee firms in 2013. New Zealand shares were virtually unchanged on Tuesday in weak trading, with Orion Health Group dropping on capital raising news while Mainfreight gained after posting a record annual profit.

The S&P/NZX50 Index dropped 0.79 points, or 0.01 per cent, to 7411.95. Within the index, 21 stocks fell, 19 rose and 10 were unchanged. Turnover was $114.6 million.

"There's no catalyst really to drive activity, the market's just going through the motions a bit at the moment, just consolidating," said Grant Williamson, director at Hamilton Hindin Greene.

Outside the benchmark index, Orion Health Group dropped 13.3 per cent to $1.04. It will raise $32.9 million in a discounted two-for-nine rights issue to shore up working capital after posting a $34.2 million full-year loss that reflected weaker sales in Europe, the Middle East and Africa.

"It's not surprising that they're looking to raise further funds as well, they've had another reasonable size loss," Mr Williamson said.

"I'm sure investors will be hoping this cash injection will carry them through to a profit."

Comvita was the best performer, up 1.8 per cent to $5.65.

"Bargain hunters are pushing it back up, but it's still down significantly on a month or so ago," he said.

Mainfreight rose 1 per cent to $22.50. The transport and logistics group posted a 16 per cent gain in full-year profit to $101.5m, surpassing $100m for the first time.

Restaurant Brands was the worst performer, down 2.3 per cent to $5.61, and Z Energy dropped 1.6 per cent to $7.52.

Summerset Group dipped 1 per cent to $4.88. The retirement village operator announced a retail bond offer of $75 million with the ability to accept up to $25 million in over-subscriptions.

Outside the main board, Moa Group fell 4.6 per cent to 63 cents. The brewer reported a slightly narrower full year net loss of $2.4m as revenue lifted 26 per cent and gross margin improved.

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