Auckland Airport's 13 % dive pushes sharemarket lower

By NZPA

Tuesday 26th February 2008

A 13% fall in Auckland Airport shares today swamped any positive influences from offshore, including a 1.5% gain in the Dow Jones overnight.

Auckland Airport shares closed down 38c at $2.45, just above the session low of $2.43, on speculation the Canada Pension Fund will pull its bid due to the Government passing legislation last night wiping out the tax advantages for the fund.

The CPPIB said this afternoon it would proceed with its partial offer, but that failed to quell investor concerns with the stock slipping a few cents further after the announcement.

That helped push the benchmark NZSX-50 index down 0.8% to close at 3543.26. Turnover totalled $91.9 million, of which $31.5 million was Auckland Airport.

"Overall, the New Zealand market again was fairly disappointing, down 27.5 points on the back of what were fairly strong offshore markets," said Hamilton Hindin Greene director Adrian Vance.

"With the exception of Auckland Airport and probably some of the other major stocks, the market's still very, very quiet, fairly directionless."

Telecom, which went ex a 7cps dividend yesterday, fell 3c to $3.86, its lowest level since December 21, 1993.

Fletcher Building rose 13c to $9.75, Contact Energy was a cent higher at $7.65, Fisher & Paykel Healthcare was unchanged at $2.55, F&P Appliances rose 3c to $2.56, and Vector was down 3c at $1.90.

Casino operator Sky City, which yesterday gained 5c after it pleasantly surprised the market with a strong first half result, was down 10c at $3.86.

The Warehouse continued to gain on speculation Woolworths will make a pre-emptive takeover bid strike, up another 1c to $6.15 after gaining 14c yesterday.

Investment company Hellaby Holdings rose 13c to $2.07 on very light turnover after an improved interim profit of $5 million, and the company's comments it was on track to turn around last year's loss.

PGG Wrightson was unchanged at $2.10 after it made a conditional offer for Keith Seeds in Australia.

Abano Healthcare fell 5c to $4.75 after suitor Crescent Capital said it waived the 90% acceptances condition on its $5.20 per share offer, if it passes the 50% threshold.

NZ Oil and Gas was up 3c at $1.19, Port of Tauranga was up 5c at $6.45, Ryman Healthcare rose 4c to $1.78, and Ebos was up 5c at $4.85 after boosting interim net profit by 86%.

With the New Zealand dollar hitting a post-float high of US81.53c, Tourism Holdings fell 4c to $1.85, and exporter Rakon fell 2c to $2.85.

Pyne Gould Corp whose strong result including a standout performance from Marac, rose 40c, or 12%, to $3.70.

NZ Refining fell 6c to $7.00, Michael Hill fell 3c to $1.04, Air New Zealand fell 2c to $1.76, and Hallenstein Glasson was down 5c at $3.80.

Australia's benchmark index was up 0.7% at 5659, while Japan's Nikkei share average was down 0.5%.

Earlier on Wall Street, US stocks rose sharply on signs the two largest bond insurers would stabilise, bringing a wave of relief to a market dogged by concerns of further bank write-downs.

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