Ryman Healthcare falls to its lowest level in 11 years after the sudden departure of its CEO – Market nearby

New Zealand posted a solid gain of half a percent and rebounded along with other regional stock markets as tensions between Iran and Israel appeared to ease.

The S&P/NZX 50 Index turned around at lunch
after hitting a morning low of 11,731.04 and closing at 11,852.8, up 56.58 points or 0.48 percent.

There were 73 gainers and 65 decliners across the market in light trading in 21.31 million share trades worth $67.84 million.

Jeremy Sullivan, investment adviser at Hamilton Hindin Greene, said the local market opened weaker after “some icy valuations in the US tech sector” and then recovered after Iran clarified Israel’s counterattack.

“There has been a slight de-escalation of the situation in the Middle East,” he said. “Iran noted that its nuclear facilities were unharmed and that Israeli retaliation was not extensive.”

The Australian S&P/ASX 200 Index had risen 0.94 percent to 7638.7 points at 6 p.m. Dutch time; the Hong Kong Hang Seng was up 2.13 percent at 16,570.45; and Japan’s Nikkei 225 rose 0.52 percent to 37,260.99.

On the eve of news from the major US technology stocks, the Nasdaq Composite fell 2.05 percent to 15,282.01 points and the S&P 500, on track for its biggest monthly decline since December 2022, fell 0.88 percent this weekend to 4967.23 (NZ time). .

Chipmaker Nvidia fell 10 percent to $762, and Netflix fell 9.09 percent to $555.04.

At home, ASB Bank now expects the first cut in official cash rates in February, rather than November as previously thought. The bank said financial markets both here and elsewhere are being plagued by the persistent tail end of inflationary pressures (New Zealand and global).

While headline inflation of 4 percent following the release of the March Consumer Price Index was in line with expectations, it was the inflation mix that was surprising and significant.

Ryman Healthcare fell 2 cents to an 11-year low of $4.32 after the sudden departure of CEO Richard Umbers. Dean Hamilton will become executive chairman while a new CEO is named. Ryman reaffirmed its full-year underlying earnings guidance of $265 million – $285 million.

Sullivan said it is never reassuring “when you see a CEO leave so quickly and there must have been some troubled conversations at the board level about Ryman’s performance.”

He suggested a further capital increase is in the offing as Ryman builds faster than it is currently generating cash. Ryman raised $902 million in the market last February.

Fletcher Building rose 11c or 2.85 per cent to $3.97; Chorus recovered 19c or 2.62 percent to $7.43; Auckland International Airport gained 12c to $7.97; Spark added 6.5c to $4.715; and Freightways rose 14c to $8.74.

Heartland Group added 3c or 2.91 percent to $1.06; Michael Hill rose 3c or 4.48 per cent to 70c; Channel Infrastructure gained 3c or 1.99 percent to $1.54; Restaurant Brands rallied 11c or 3.24 percent to $3.50; and SkyCity improved 4c or 2.2 percent to $1.86.

Genesis Energy, up 1c to $2.35, said third-quarter electricity sales increased by 6.4 percent or 80GWh to 1336GWh and the number of new customers increased by 1537, bringing the total to 494,752.

Vector, down 2c to $3.70, told the market that connections (electricity and gas) were up 7.9 per cent for the nine months ended March and 2 per cent for the year. The distributed electricity volume over the nine months increased by 3.2 percent and the gas volume decreased by 4 percent.

Air New Zealand was unchanged at 57 cents after cutting full-year gross profit to $230 million from $200 million, from $200 million to $240 million, due to “softening revenue conditions” in the fourth quarter, both domestically as in the North American market. .

Port of Tauranga fell 9c or 1.83 per cent to $4.83; Scott Technology fell 8c or 2.82 percent to $2.76; Synlait fell a further 3c or 5.56 per cent to 51c; Gentrack fell 19c or 2.32 per cent to $8; and Oceania Healthcare fell 3c or 3.17 percent to 61c.

Car retailer 2 Cheap Cars, unchanged at 82c, has announced that David Sena will take over as CEO following the resignation of Paul Millward. Sena and his family trust have a 76 percent stake in the company.

Radius Residential Care rose 0.006c or 5.26 percent to 12c after reporting that 12-month operating profit (EBITDA) rose 48 percent to $21 million compared to the previous year. Radius, which has no short-term debt, will pay out a final dividend of 0.7ca share.