NZ stocks: Auckland airport sale takes centre stage on sharemarket

6.18pm

The discounted sale of a large parcel of shares in Auckland International Airport was the main feature on the sharemarket today.

Auckland International Airport (AIA) slumped 21c to 706 following the discounted sale of a large parcel of shares. Australian fund manager Colonial First State sold a 7.2 per cent stake, or around 22 million shares in AIA after the market closed yesterday. The 695 per share price tag was 4.5 per cent below AIA's closing price yesterday of 727.

ABN Amro Craig's Matt Willis said this was not an excessive discount, given the size of the parcel of shares.

"The stock will need to digest a portion of that placement stock, but one would expect the majority of it has gone to long term shareholders," Mr Willis said.

The sale represented about half of Colonial's holding in AIA.

AIA's fall reflected the overall market, with the NZSX-50 gross index down 5.43 points to 2728.39 and the NZSX-All capital index down 2.90 points at 909.35.

Bellwether stock Telecom fell 5c to 566.

Sky City Entertainment rose 6c to 436, partly recovering from the 13c fall it took yesterday as investors reacted to a proposed levy on gaming machines and casinos which is set to come into force on October 1.

Mr Willis said most analysts had already made provisions for such a levy.

"And accordingly if you look at consensus numbers Sky City still stacks up very well from a valuation point of view," Mr Willis said.

Pacific Retail Group (PRG) fell 1c to 200. The group announced today it intends to buy back its secured capital notes (SCNs), using some of the $138.5 million proceeds from selling its New Zealand retail business. Looking ahead, PRG said it expected a net profit after tax between $55m and $60m for the September half.

Number two stock Carter Holt Harvey regained some ground after taking a battering during the past couple of days on the back of weak pulp prices. The stock rose 4c to 236.

Mr Willis said the pulp price falls highlight the cyclical nature of the forestry industry. He said the possibility of the company selling its forests remained a point of interest for the market.

"If Carters can divest their forest but ensure their supply commitments I think it will be very well received by the market." Air New Zealand fell 2c at 190, after announcing its chief financial officer was resigning.

Energy stocks took a hit today; NGC Holdings down 1c to 303, TrustPower down 5c to 475, Contact down 1c to 585 and Powerco down 1c to 205.

Total market turnvover was a healthy $252.4 million. Of the 156 stocks traded today there were 53 rises and 55 falls.

Other stocks on the move today included: Sky Network TV down 13c at 518, Hallenstein Glasson down 10c at 340, Hellaby up 10c at 580, Mooring Systems up 15c at 400 and Michael Hill Jeweller up 11c at 681.

- NZPA