Turners goes up a gear as NZ market remains flat

Car dealer Turners Automotive shrugged off any slowdown in the economy with an earnings upgrade while the New Zealand sharemarket remained sluggish following a busy results season.

Tuesday, March 7th 2023, 6:41PM

by BusinessDesk

The S&P/NZX 50 Index had a topsy-turvy day before having a late surge and closing at 11,919.56, up 7.08 points or 0.06% after reaching an intraday low of 11,859.87.

There were 63 gainers and 56 decliners over the whole market on volume of 20.08 million share transactions worth $97.94m.

Across the Tasman, the Reserve Bank of Australia (RBA) increased its official cash rate for the 10th time in a row, this time 25 basis points to 3.6% – the highest rate since June 2012. NZ’s rate is 4.75%.

The S&P/ASX 200 Index rallied half a per cent after the RBA said that the monthly consumer price index suggested inflation (at 7.4%) had peaked.

The ASX index was up 0.53% to 7367.7 points at 6pm NZ time. That rise spilled over to the NZ market right at the end.

At home, Turners Automotive climbed 14c or 4.23% to $3.45 after telling the market its full-year gross profit is on track for a record $44m or more, exceeding the 2022 financial year’s $43.1m. The auto retail division continues to trade strongly and loan arrears improved in February.

Matt Goodson, managing director of Salt Funds Management, said Turners’ share price had been weak over the past few months but it was continuing to gain market share and it was maintaining good discipline with its finance book.

“But I wouldn’t read any of Turners’ performance into the state of the general economy,” he said.

Goodson said the local market was relatively quiet, with light turnover in the leading stocks. “The market is waiting to see the results of the retail bookbuild in the Ryman Healthcare rights offer, and whether Pushpay will convene another shareholders’ meeting to consider the takeover offer.”

Pushpay Holdings was lightly traded (79,800 shares worth $95,380 changed hands) but its share price rose 8c or 6.96% to $1.23.

There was continued weakness in the retirement village sector, with Ryman Healthcare down 3c to $5.59; Summerset Group declining 12c to $9; and Oceania Healthcare shedding 2c or 2.6% to 75c.

Market leader Fisher and Paykel Healthcare was down 34c to $26.15; Meridian ex-dividend declined 7c to $5.255; and Napier Port decreased 10c or 3.57% to $2.70.

South Port NZ was down 15c or 1.9% to $7.75; Smartpay Holdings declined 4c or 3.13% to $1.24; Property for Industry decreased 3.5c to $2.315; and T&G Global fell 8c or 3.67% to $2.10.

Auckland International Airport was up 7.5c to $8.68; a2 Milk gained 8c to $7.40; Chorus increased 8c to $8.21; and Skellerup Holdings added 10c or 1.95% to $5.24.

Mainfreight collected $1 to $73.50; Sky TV was up 5c or 1.97% to $2.59; Tower gained 1.5c or 2.42% to 63.5c; Steel & Tube gained 3c or 2.42% to $1.27; and Embark Education added 3c or 5.45% to 58c.

Medicinal cannabis companies Rua Bioscience collected 1.3c or 6.95% to 20c, and Cannasouth was down 2c or 6.67% to 28c.

KMD Brands, down 1c to $1.09, announced that all three of its brands, Kathmandu, Rip Curl and Oboz, received the international B Corps certificate for social and environmental impact, accountability and transparency.

Other retailers Hallenstein Glasson shed 11c or 2.03% to $5.31; Michael Hill declined 3c or 2.65% to $1.10; and The Warehouse Group decreased 7c or 2.69% to $2.53.

NZ Oil & Gas (NZOG) increased 2c or 5% to 42c after extending its gas supply agreement with Genesis Energy for three years from October 1. The agreement covers all NZOG’s 4% interest in the offshore Kupe gas field. Genesis was up 3.5c to $2.89.

Advanced manufacturer Rakon, up 1c at 92c, narrowed its full-year operating earnings (Ebitda) guidance to $40m-$44m, from the previous $38m-$44m. Rakon said it was on track to deliver a solid result for the 2023 financial year ending March.

NZME was up 3c or 2.54% to $1.21. Its subsidiary NZME Advisory pleaded guilty in the Auckland District Court to one charge of supplying unsafe magnet sets via GrabOne between October 2020 and September 2021. NZME has since sold GrabOne. (BusinessDesk is owned by NZME.)

Tags: Market Close