Sharechat Logo

SkyCity shares hit 7-week low as fire encapsulates convention centre

Tuesday 22nd October 2019

Text too small?

SkyCity Entertainment Group shares dropped to a seven-week low in a knee-jerk reaction to news of a major fire at the already-delayed building site for the international convention centre. 

The stock fell as low as $3.82 after headlines started to emerge at 1.10pm, and was recently down 2 percent at $3.90. Shares of Fletcher Building, which is building the centre, were recently down 1.7 percent at $4.64. 

Emergency services are still fighting the fire in downtown Auckland, with 20 trucks and 16 specialist and support vehicles responding to the blaze, according to the latest media update. 

Grant Davies, an investment adviser at Hamilton Hindin Greene, said the fire was obviously bad news for the project, but that there was a dearth of information for investors on how to judge the impact of the fire. 

"A lot of people are operating on rumour and just guessing. Is there is an argument for trading to be halted until there's more certainty? It's a grey area," Davies said

The convention centre had originally been slated to be completed in the first quarter of this year, but delays by lead contractor Fletcher Building meant the current anticipated date has been delayed to the second half of next year. The casino operator had noted about $40 million in liquidated damages when it announced its annual result while Fletcher's liability is believed to be capped. 

SkyCity has previously said it was already reviewing all 2020 conference bookings. Davies said further delays would push out its ability to secure signature conventions the company had hoped to secure.


  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:

12th November 2019 Morning Report
MARKET CLOSE: NZ shares gain, retirement villages buoyed by Auckland housing market bounce
NZ dollar rises, shrugging off US-China trade war woes
Long-serving ACC investment chief calls it a day
Institutional investors continue to shun Fonterra
Card spending stalls; dearer petrol crowds out other goods
Abano directors cave to takeover by scheme of arrangement
Fletcher dismisses subcontractor claims as vague
11th November 2019 Morning Report
Odds favour a rate cut but it's a line ball call

IRG See IRG research reports