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Market Wrap with Grant Davies - Orion Healthcare Tumbles

New Zealand shares rose today, with Green Cross Health and Meridian Energy gains overcoming a downgrade for Orion Health.

The S&P/NZ50 Index gained 10.86 points, or 0.13%, to 8329. Turnover was $118 million.

“We’ve had a poor trading day for Orion Healthcare, which had a negative revenue update this morning and a bit of a change in strategy so the market (is) not treating that too kindly,” Hamilton Hindin Greene investment adviser Grant Davies says.

Orion Health led the index lower, down 8.57% to 0.64, after the healthcare software company downgraded revenue guidance from $175-190m to $170-173 million for its 2017 financial year ended March 31.

Its chief financial officer Mark Tisdel told NBR a restructure, including job cuts, will save the company $25-30m a year but didn't give a timeline.

Green Cross Health was the best performer today, up 3.13% to $1.650.

Meridian Energy was up 2.45%, to $2.90.

Pacific Edge was the worst performer, down 3.9% to 0.370.

A2 Milk rose 0.4% to $12.450, continuing its recovery after Nestlé sent its shares tumbling with an announcement last week it will roll out an A2 version of its Illuma brand of infant formula across China.

In a reference to the new competitor, a2 says in a statement today to the NZX that its solely A1 protein-free principle “contrasts significantly with likely new entrants who will need to consider how to communicate internally and externally the benefits” of the milk.

Synlait, which supplies a2, was up 2%, to $8.56.

Mr Davies says he expects to see more volatility in the week ahead, with US President Donald Trump “leading the news headlines”.

Global stock markets fell today after China retaliated against Mr Trump’s move to impose tariffs on Chinese steel and aluminium with its own trade restrictions on 128 imported American products.

Top 5 gainers of the day:
• Green Cross Health $1.650. Up $0.050 / 3.13%
• JP Morgan $6.050. Up $0.170 / 2.89%
• Mercury Energy $3.300 $0.080 / 2.48%
• Tegel $0.830 $0.020 / 2.47%
• Meridian Energy $2.925 $0.070 / 2.45%

Top 5 losers of the day:
• Promisia Integrative $0.008. Down $-0.001 / -11.11%
• Orion Health $0.640. Down $-0.060 / -8.57%
• GeoOP $0.120. Down $-0.010 / -7.69%
• Plexure Group $0.200. Down $-0.010 / -4.76%
• Pacific Edge $0.370. Down $-0.015 / -3.90%

Original Article at NBR.co.nz

Filed under Grant Davies \ NBR

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