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Shares start trading week on mixed note

NZ NewswireNZ Newswire 28/11/2016 Sophie Boot
© Hagen Hopkins/Getty Images

New Zealand shares were mixed as Orion Health Group plunged following its first half results, while Sky TV and Contact Energy gained.

The S&P/NZX50 Index rose 3.33 points, or 0.1 per cent, to 6,902.95. Within the index, 25 stocks fell, 17 rose and nine were unchanged. Turnover was $107.3 million.

Orion Health dropped 18 per cent to $2.05. The health software developer narrowed its first-half loss to $18 million after boosting sales of perpetual licences in North America and cutting operating costs, and said it would make a profit in 2018. Sales rose to $104.2 million from $101.7 million.

"To put it bluntly, they've had a shocker - a terrible result, nothing good in it at all really and the market is very disappointed in pretty meagre revenue growth," said Mark Lister, head of private wealth research at Craigs Investment Partners.

"There's not a lot of transparency from the company about why they're missing expectations, and you're now starting to see concern creep in about the amount of cash they're burning through, and whether they've got enough left to get them through to when they start turning a profit."

The local market has stabilised somewhat, Lister said, outperforming Australia's S&P/ASX 200 index which was down 0.5 per cent, and Japan's Nikkei 225 which had dropped 0.6 per cent, at 5pm New Zealand time.

Metro Performance Glass was one of those companies, up 1.6 per cent to $1.95 on Monday, while Fisher & Paykel Healthcare gained 0.7 per cent to $8.33.

"They're having a rebound today - obviously they had a very rough week last week, down about 10 per cent for the week, it's up a couple of per cent, and a little bit of a rebound for Fisher & Paykel Healthcare as well, which took a bit of a beating last week as well."

Sky TV was the best performer, up 3 per cent to $4.74, while Contact Energy gained 2.6 per cent to $4.72.

Vital Healthcare Property Trust dropped 2.4 per cent to $2 and Goodman Property Trust shed 2.4 per cent to $1.23.

Outside the benchmark index, Smartpay Holdings gained 9.4 per cent to 17.5 cents.

OceanaGold Corp rose 3.3 per cent to $4.07. The owner of New Zealand's biggest gold mine at Macraes is to delist from the NZX at the end of the year to reduce compliance costs, leaving its shares to trade on the ASX and the Toronto Stock Exchange.

Green Cross Health gained 1.2 per cent to $2.58. The listed medical services provider saw its first-half operating profit stall despite a large one-off gain which boosted its statutory net profit 24 per cent.

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