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Orion rebounds after signing new UK deals

NZ NewswireNZ Newswire 12/04/2016 Sophie Boot

Orion rebounds after signing new UK deals © Twitter/Orion Health Orion rebounds after signing new UK deals New Zealand shares rose after Orion Health Group said it won new UK clients and SkyCity Entertainment Group rebounded following a conference call for analysts while A2 Milk Co dropped.

The S&P/NZX 50 Index gained 0.9 points, or 0.01 per cent, to 6726.02. Within the index, 24 stocks rose, 20 fell and six were unchanged. Turnover was $168 million.

Orion led the index, advancing 4.5 per cent to $4.20, a nine-month high, after the health systems software developer signed up a pair of new clients in the UK. It's gained 20 per cent in the last week, having announced three significant deals in the last fortnight.

"That announcement has certainly seen a very nice rebound in the share price," said Grant Williamson, director at Hamilton Hindin Greene.

"It has been under pressure for quite some time, but they've made a few good announcements recently and it really does appear to have turned the trend on that stock quite nicely."

SkyCity grew 4 per cent to $4.92. Last week it shed 7 per cent over Thursday and Friday's trading sessions after the resignation of its chief executive Nigel Morrison.

Restaurant Brands New Zealand which operates KFC, Pizza Hut, Carl's Jr and Starbucks franchises rose 3.1 per cent to $5.05. The company will announce its earnings on Thursday.

Sky TV grew 2.2 per cent to $4.66 and Xero added 2.1 per cent to reach $16.70.

A2 Milk was the biggest decliner, dropping 6.3 per cent to $1.78.

Spark shed 1.7 per cent to $3.47, Mighty River Power lost 1.6 per cent to $2.85, and Stride Property fell 1.5 per cent to $2.26.

Outside the main index, Cavalier Corp declined 1.4 per cent to 69 cents. It was asked by the NZX to explain a 27 per cent jump in its share price in less than a week.

Cavalier has gained 14.8 per cent this year, and posted an improved first-half profit in February while signalling its full-year earnings will probably be at the top end of expectations as it restructures its wool business and reduces debt.

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