MARKET CLOSE: NZ shares mixed, reduced trading expected ahead of election; A2, Fisher & Paykel up, Auckland Airport down

Friday 1st September 2017

New Zealand shares were mixed, with A2 Milk Co and Fisher & Paykel Healthcare gaining, while blue-chips Auckland International Airport and Spark New Zealand declined.

The S&P/NZX50 Index gained 4.88 points, or 0.06 percent, to 7,821.98. Within the index, 23 stocks fell, 17 rose, and 10 were unchanged. Turnover was $154 million.

"It has been a pretty volatile week, with the first few days showing reasonable downside over North Korean concerns but the market picking up on Wednesday and Thursday," said Grant Williamson, director at Hamilton Hindin Greene. "I don't think the reporting season has had too much impact on the market. Overall it was more than satisfactory in the eyes of investors and though there wasn't anything that took the market by surprise on the upside, there are one or two stocks at record highs."

Fisher & Paykel Healthcare is one of those stocks, rising 2.2 percent to $12.03 today, a record.

"Obviously the currency has had some pressure and a little of that has to do with the election poll results showing a very tight race," Williamson said. "It's good for the exporters of this world, like Fisher & Paykel."

Williamson said that the market may be quiet over the next few weeks ahead of the general election on Sept. 23, with the most recent poll showing Labour ahead of National for the first time in ten years, making investors uncertain about which way it will go.

"Investors on the buy side may be quieter, and even after the election we may not know what the result is for a while due to coalitions being formed," Williamson said.

A2 Milk Co was the best performer on the index, up 2.9 percent to $5.71, with Fletcher Building gaining 2.6 percent to $8.37 after a volatile week. Comvita rose 2 percent to $7.55.

Auckland International Airport was the worst performer, dropping 1.8 percent to $6.67, while Meridian Energy fell 1.7 percent to $2.90 and Spark New Zealand dropped 1.7 percent to $3.85.

Outside the benchmark index, Freightways dropped 1.7 percent to $7.77. Dean Bracewell is to step down as managing director after 18 years in the role and 34 years with the logistics and data management company. Mark Troughear was named as replacement chief executive, effective Jan. 1, 2018. Bracewell will step down on Dec. 31 but will be available in an advisory capacity to the board and management until Aug. 31, 2018.

"Dean’s focus on developing internal talent and capability, together with his long period of notice, allows Freightways to continue without interruption while transitioning its leadership,” chair Sue Sheldon said in a statement. "Dean led Freightways through its IPO in 2003 at a listing price of $1.60 and an initial market cap of $195 million to the latest share price of $7.90 and market cap of $1.2 billion.”

Troughear joined Freightways in 1996 and has led both its express package & business mail division and its information management division, the company said.

SeaDragon was unchanged at 0.6 cents. The company says it has an unresolved quality control issue which has hurt prices and is waiting to hear back from offshore customers who are assessing samples of its refined Omega-3 fish oil.

The company said it was working to satisfy exacting regulatory and customer specifications and believes it has addressed the problems with one exception but the price it can get will be weaker in the meantime.

Intueri Education Group was unchanged at 1.1 cent. Liquidators have been appointed after ACG Education, the private equity-owned education services provider, bought its assets.

William Black and Conor McElhinney, partners of McGrathNicol, were appointed liquidators of Intueri Education Group and its New Zealand subsidiaries after the administrators presented their report at a meeting earlier today and "recommended that creditors vote to place the entities into liquidation, given that there was no other viable alternative and that all of the assets of the companies had been sold," the liquidators said in a note to the stock exchange.

The company was placed into voluntary administration at the start of June after a strategic review attracted an offer for its operating assets for less than the $70.7 million owed to ANZ Bank New Zealand, meaning the lender would be forced to take a loss.

(BusinessDesk)

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