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Shares mixed, SkyCity drags market down

NZ Newswire logoNZ Newswire 28/06/2017

Sky TV extends slide as NZX 50 falls © Hagen Hopkins/Getty Images Sky TV extends slide as NZX 50 falls New Zealand shares were mixed on Wednesday, with most of the market including Summerset Group Holdings and Westpac rising but a big trade in SkyCity tipping the index down.

The S&P/NZX 50 Index dropped 1.86 points, or 0.02 per cent, to 7624.49. Within the index, 23 stocks rose, 16 fell and 11 were unchanged. Turnover was $357 million.

SkyCity Entertainment was the worst performer, dropping 4.2 per cent to $4.07.

Chair Chris Moller will retire from New Zealand's only listed casino company at the end of this year after nine years as a director, to be replaced by its new director Rob Campbell.

"There was a big trade this morning just after 9am, over 35 million shares at $4.05, and that's the main reason we've seen such a large amount of volume going through the market today," said Peter McIntyre, investment adviser at Craigs Investment Partners.

"I don't think it's hand-in-hand with Chris Moller leaving, it just happens to coincide I think, but it's a massive trade.

"SkyCity has had a difficult month, down 7.5 per cent, they've really struggled," Mr McIntyre said.

"You've got the convention centre build and there are issues with Chinese high rollers which have affected parts of the casino market in Australasia.

''It's a bit unloved at the moment, mainly around those issues. A number of valuations sit between $4.20 and $4.30, a lot of brokers don't dislike the stock but they are pretty neutral on it," he said.

Summerset led the index, rising 2.8 per cent to $4.78.

The best-performing retirement village stock in the past 12 months said 2017 underlying earnings may rise as much as 33 per cent, driven by new sales of occupation rights to its units.

"They've given pretty upbeat guidance, they've been able to develop properties then sell them with good margin, that's a continuation of upgrades seen from Summerset," Mr McIntyre said.

Westpac rose 1.4 per cent to $31.70, Mainfreight gained 1.3 per cent to $23.50 and Comvita advanced 1.2 per cent to $5.94.

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