Sharechat Logo

MARKET CLOSE: NZ shares up, Auckland Airport and Westpac gain while Heartland, Fletcher dip

Thursday 5th July 2018

Text too small?

New Zealand shares rose in light trading, led higher by Auckland International Airport and Westpac Banking Corp, with Heartland Bank and Fletcher Building softening.

The S&P/NZX50 Index gained 37.21 points, or 0.4 percent, to 9,062.85. Within the index, 23 stocks rose, 19 fell and eight were unchanged. Turnover was $97 million.

"It has been a pretty dull old day really," said Grant Williamson, director at Hamilton Hindin Greene. The NZX50 has gained 1.3 percent this week, despite trading being light ahead of local school holidays and with few corporate announcements, and Williamson said "just a few stocks have pushed the index" up to its current levels.

Auckland Airport led the index higher, up 2.4 percent to $6.93. Westpac gained 2.1 percent to $32.30, Australia and New Zealand Banking Group rose 2 percent to $31.36, and Trustpower rallied 1.8 percent to $5.75.

A2 Milk Co gained 1.3 percent to $11.55. Its new managing director and chief executive Jayne Hrdlicka will start on July 16, replacing Geoff Babidge who had been in the role since 2010.

The worst performer was Heartland Bank, down 2.3 percent to $1.71. Fletcher Building dropped 2.1 percent to $6.85 and Skellerup Holdings fell 1 percent to $1.96.

Ebos Group dipped 0.5 percent to $20.70. The share price has surged from $17.95 since Monday, when it announced a distribution deal with Australia's Chemist Warehouse which could bring in A$1 billion of revenue in the first year. The two expect to sign a five-year supply agreement, starting July 2019, which could potentially be extended by three years, after Ebos won the tender to be the exclusive third-party distributor of pharmaceutical products to over 400 Chemist Warehouse and My Chemist stores in Australia.

"Ebos has had such a fine run since announcing picked that up, it's risen 15 percent and it's given half a percent back today," Williamson said.

CBL Corp remained suspended at $3.17. It was removed from the NZX50 benchmark index in the June rebalancing, replaced by Skellerup. The administrators said an agreement has been reached to sell its UK-based Professional Fee Protection business to US private equity firms Highbridge Principal Strategies and Madison Dearborn Partners. The sale terms were not disclosed and the deal is subject to regulatory approval.

Auckland-based CBL Corp had its stock suspended from the NZX on Feb. 8 amid concerns from NZX Regulation about the information it had given the market, following engagement between it, CBL, the Financial Markets Authority, the Reserve Bank, and a number of overseas regulators with prudential oversight of CBL’s international insurance business. 


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

MARKET CLOSE: NZX50 tops 10,000, growing 284% in past decade
NZ dollar little changed ahead of Australian CPI data
NZX50 cracks 10,000 level as weak kiwi boosts A2, F&P Healthcare
Zespri signals upside for grower payments in 2020
Bathurst maintains guidance despite reduced Stockton output
ComCom conditionally approves Knauf-USG merger
23rd April 2019 Morning Report
NZD below 67 US cents after US data lifts greenback
MARKET CLOSE: NZX50 gains 1.8% this week, buoyed by rate outlook
NZ dollar falls against Aussie after strong Oz jobs data

IRG See IRG research reports