Also pressing down on the airport’s stock today was the news it would be responding to the Commerce Commission’s draft determination for its input methodologies review around the cost of capital and the commission’s review of AIA’s pricing decision – which is expected early next year.
“The Commerce Commission determination is going to have a massive impact on what they can charge for their assets,” Hamilton Hindin Greene’s Grant Davies said.
“A little move in the dial there can have a big impact on the share price and of course the uncertainty of what the final determination is going to be.”
The stock ended Tuesday’s trading session down 3.6 per cent to $8.29.
Fisher & Paykel Healthcare also fell 0.5 per cent to $23.79 while Ebos Group was down 1.7 per cent to $35.64.
Fieldays kicked off today – the Southern Hemisphere’s largest agricultural event – with Prime Minister Chris Hipkins appearing at this morning’s opening.
Among other things, Hipkins said a solution was “very close” to the embattled primary sector-led emissions pricing partnership and that he didn’t support a blanket tax on fertiliser.
A2 Milk edged down 0.7 per cent to $5.59, along with Allied Farmers which was down 5.6 per cent to 67 cents.
Fonterra Shareholders’ Fund was up 0.3 per cent to $3.55, fishing company Sanford rose 0.5 per cent to $4.07.
Agribusiness Scales fell 1.9 per cent to $3.14 and dairy manufacturer Synlait Milk edged up 0.6 per cent to $1.69.
Dual-listed residential developer Winton Land managed to rise 2.3 per cent to $1.80 even after telling the market it expects to report net profit after tax (NPAT) at the lower end of its $72.4m to $82.4m guidance that the firm issued in February earlier this year.
Davies said property development had been a “very difficult” place to be, although he added that the retirement sector had been suffering even more.
Ryman Healthcare did jump 2.1 per cent to $6.38 by the end of the day.
Diversified infrastructure group Infratil also edged up 0.6 per cent to $9.85 and Davies said the stock had recovered from where it had fallen yesterday in response to the company opening its $100m retail offering for existing investors.
“It’s holding its own pretty well,” he said.
Tourism Holdings was up 1.8 per cent to $3.87. Statistics NZ said today the strong return of foreign visitors had helped narrow the nation’s current account deficit, though it remained at high levels.
Its balance of payments data series said the current account, which captures trade in goods and services and net income flows, had a deficit of $33.03 billion in the 12 months ended March 31 – or 8.5 per cent of gross domestic product (GDP).
This had narrowed from the record shortfall of $34.94b, or 9 per cent of GDP, at the end of December, which was revised from the 8.9 per cent of GDP deficit reported at the time.
Harbour Asset Management picked up another 1 per cent stake in cancer diagnostic firm Pacific Edge. The investment company already had a 13.5 per cent stake but now has a total shareholding of 14.5 per cent.
Pacific Edge’s shares slumped 89.9 per cent last week on the news that the firm was likely to lose Medicare coverage of its Cxbladder tests in the US from mid-July.
“In for a penny,” Davies commented on Harbour’s move.
Pacific Edge’s stock was flat at 9.8 cents per share by early Wednesday evening.
Eyes on the Fed
The US Federal Reserve comes out with its next interest rate move decision on Thursday morning NZ time.
Inflation data out of the US ahead of the decision, which showed inflation may be cooling faster than expected, has given markets more confidence that the Fed will choose to pause rate hikes.
“There’s no certainty, but I think the market is pricing that in – and even beginning to price in no further hikes,” Davies told BusinessDesk.
On the currency front, the NZ dollar was trading at 61.64 US cents at 3pm in Wellington, from 61.19 cents on Monday.
