NZX CLOSE: NZ shares edge lower, led by Auckland Airport

Monday 11th January 2010

New Zealand shares edged lower in the first day this year where trading volumes resembled normal levels, led by a decline in Auckland International Airport Ltd. after it announced it was buying holdings in two North Queensland airports.

The NZX50 Index rose 6.5, or 0.2%, to 3303.75. Within the index, 18 stocks were weaker, 13 unchanged, two didn’t trade, and 17 gained. Turnover was $58.2 million as more people returned from their Christmas holidays.

National gateway Auckland Airport (NZX: AIA ) dropped 2.9% to $2.02 after announcing the first major piece of corporate activity, this year, the purchase of a 24.6% stake in Cairns and Mackay airports in a bid to attract more tourists from Asia to New Zealand.

“It’s a big change of direction for fortress Auckland Airport to venture across the Tasman,” said Alan Moore, who manages $350 million for Milford Asset Management.

“The markets usually have a negative reaction on something like that – they don’t like the unknown.”

Industrial property investor Property for Industry Ltd (NZX: PFI ) fell 2.5% to $1.19 and commercial landlord AMP NZ Office Trust (NZX: APT ) declined 1.3% to 77 cents as official data showed residential property values climbed 2.8% last year and were now 4.9% below their peak in late 2007.

Respirator and breathing device manufacturer Fisher & Paykel Healthcare Corp (NZX: FPH ) dropped 2.1% to $3.32, while NZ Farming Systems Uruguay Ltd (NZX: NZS ), which develops dairy farms in South America, dropped 2% to 49 cents.

Phone company Telecom Corp (NZX: TEL ) fell 1.5% to $2.55. Discount outdoor equipment retailer Kathmandu Holdings (NZX: KMD ) was the biggest gainer on the NZX50, gaining 5.3% to $2.00, though that’s still below the $2.13 offered in the company’s November float.

PGG Wrightson Ltd (NZX: PGW ) the rural services company, gained 4.9% to 64 cents after a shake-up on the New Zealand Merino board, of which PGW is a shareholder with Merino Grower Investments.

Bourse operator NZX Ltd (NZX: NZX ) gained 2.7% to $2.32 and insurer Tower Ltd (NZX: TWR ) rose 2.4% to $2.17.

Infrastructure investment company Infratil Ltd. (NZX: IFT ) gained 1.8% to $1.69 after it finalised the sale of its 32% holding in Brisbane-based alternative energy company Energy Developments for A$2.75 a share to Greenspark Power Holding for a gain on the sale of some $94 million. The company said it will continue to increase its investment in the Australian energy sector.

Timaru millionaire Allan Hubbard’s Southbury Group took a step closer to going public after he announced a new entity, Southbury Corp., would take over as parent of South Canterbury Finance Ltd., Helicopters NZ Ltd. and Scales Corp.

Southbury Corp. raised $27.5 million of convertible notes through a private placement to inject into South Canterbury Finance that will convert into equity in the event of an initial public offering.

Businesswire.co.nz

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