Sharechat Logo

MARKET CLOSE: NZ shares fall; Air NZ warning weighs on tourism stocks

Wednesday 30th January 2019

Text too small?

New Zealand shares fell, led lower by Air New Zealand, as the national carrier's earnings and softer outlook weighed on other tourism-related companies. Auckland International Airport and Tourism Holdings fell. 

The S&P/NZX 50 index declined 80.86 points, or 0.9 percent, to 8,925.52. Within the index, 26 stocks fell, 17 gained, and seven were unchanged. Turnover was $193.4 million. 

Air New Zealand hit a three-month low after warning its annual earnings will fall by as much as 37 percent. The airline expects pre-tax earnings of $340-400 million in the year ending June 30, downgrading its forecast due to global issues with Rolls Royce engines disrupting schedules. The stock ended the day down 13 percent at $2.83 on a volume of 3.1 million, more than three times it 90-day average. 

"One positive has been the dividend policy is unchanged at the moment - that's a positive for investors," said Peter McIntyre, an investment advisor at Craigs Investment Partners.

The downgrade flowed through to other tourism-related stocks, including rental motor home operator Tourism Holdings and Auckland Airport, and might indicate signs of global economic growth slowing down, he said. Tourism Holdings dropped 6.1 percent to $4.80 on a volume of 434,000 - more than twice the average. Auckland Airport fell 3.5 percent to $7.27 on a volume of 1.8 million. 

Casino operator SkyCity Entertainment Group decreased 0.3 percent to $3.78. McIntyre said it held up reasonably well after raising its earnings guidance yesterday. 

Fisher & Paykel Healthcare was the most traded stock on a volume of 4.7 million. Its three-month average volume is 613,000. The breathing mask maker fell 1.7 percent to $12.48, extending its decline as an analyst downgrade of rival ResMed weighed on the stock. McIntyre said the strong currency added to the tone, given F&P Healthcare's reliance on exports. 

Spark New Zealand fell 1.6 percent to $3.99 on a volume of 3.7 million, slightly above its average. Infratil increased 0.8 percent to $3.775 on a volume of 1.7 million, three times its average. Fletcher Building was unchanged at $4.98 on a volume of 1.6 million. 

Of the other companies trading on volumes of more than one million shares, Meridian Energy rose 1.6 percent to $3.57, Contact Energy increased 0.2 percent to $6.02, Trade Me decreased 0.3 percent to $6.34, Mercury NZ gained 0.7 percent to $3.56, Chorus was up 1.2 percent at $4.90, and Kiwi Property Group advanced 0.7 percent to $1.415. 

Z Energy fell 1.5 percent to $5.97 and Heartland Group was down 1.4 percent at $1.38 after announcing changes to their executive teams. 

Outside the benchmark index, QEX Logistics rose 0.8 percent to $1.20 after saying it expected increased revenue from a new distribution deal with Danone. 

(BusinessDesk)

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
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:

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
Helen Clark, Don McKinnon front NZ chapter of US think-tank
Fuji Xerox auditor keeps name suppression due to reserved appeal decision
ComCom to eye fuel profits by region, activity

IRG See IRG research reports