NZ shares fall as Gentrack paints grim earnings outlook
The S&P/NZX 50 Index fell 53.26 points, or 0.5 percent, to 11,746.95. Within the index, 25 stocks fell, eight held steady and 17 rose. Turnover was $81.1 million.
Gentrack sank 13.6 percent to $2.35, below the $2.40 price the shares were sold at in a 2014 initial public offering. The utilities software developer said annual earnings will drop by as much as two thirds as tighter regulation in Australian and British energy markets has weighed on its sales pipeline.
Grant Davies, an investment adviser at Hamilton Hindin Greene, said further confirmation from Gentrack about the recent run of losing clients had sellers “reaching exhaustion point.”
Davies said the string of bad results could be indicative of further trouble, and while the business fundamentals were sound, investors needed reassurance to stem losses.
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