Auckland International Airport was down 9.5c to $8.04. Photo / NZME
A response by Auckland International Airport on the 18 per cent council shareholding caused a flurry on the New Zealand sharemarket which closed the week with a small loss in choppy trading.
The S&P/NZX 50 Index was down 12.71 points or 0.11 per cent to 11,641.85, after reaching an intraday low of 11,581.8.
The index rose nearly 2.3 per cent this week after gaining 1.9 per cent last month in a welcomed rally. It is still down 11.4 per cent for the year to date, 9.2 per cent over the past 12 months and 14.2 per cent from the peak of 13,558.2 points set on January 8 last year – and out of bear market territory.
There were 60 gainers and 72 decliners on the main board with 36.31 million shares worth $135.71 million changing hands. The number of stocks listed went to 184 with the debut, albeit lacklustre, of Wellington-based cloud services technology company Blackpearl Group.
Auckland International Airport was down 9.5c to $8.04 after responding to media reports that Mayor Wayne Brown was proposing to sell the council shares to raise about $2 billion for paying off debt.
The airport said, “It is up to investors to make decisions about the future of their shareholding and we will continue to have a constructive relationship with Auckland Council as a key shareholder.”
As well as the council, Hongkong and Shanghai Banking Corporation (HSBC) has a combined stake of nearly 20 per cent, JP Morgan Chase Bank 6.82 per cent and Citibank Overseas Investment Corp 5.87 per cent. The airport has a market capitalisation of $11.8b.
Shane Solly, portfolio manager with Harbour Asset Management, said the capital market would be open to a sale but still a little wary with the airport still recovering its traffic – as seen by its share price drop, though the stock has just come off 12-month highs.
He said the local shares did hold up well in the face of weaker markets offshore.
“We’ve seen some softer economic data out of the US. Long-term bond yields have fallen, so has the US dollar and it’s still a wait and see on the impact of the Federal Reserve interest rate actions.”
The US Core Personal Consumption Expenditures index, a gauge for inflation, rose 0.2 per cent in October, down on the September 0.5 per cent and below forecasts for a 0.5 per cent increase. Investors overnight were watching out for the Labour Department’s November employment numbers.
Across the Tasman, the S&P/ASX 200 Index was down 0.65 per cent to 7306.6 points at 5.45pm NZ Time.
At home, Synlait Milk was up 2c to $3.18, and a2 Milk was down 8c to $6.71. In its presentation to the annual meeting, Synlait did indicate that a significant lift in a2 Milk’s demand required additional production shifts.
Synlait said new opportunities were developing in the United States, and it was having “active engagement” with the top eight infant formula brand owners in China.
Wellington-based Blackpearl listed at $1.25 but it was soon down 17c or 13.6 per cent to $1.08 on 59 trades worth $18,151.
Blackpearl, chaired by American Tim Crown – co-founder of Fortune 500 company Insight Enterprises – builds, buys and markets data-driven cloud-based services, comprising productivity and marketing applications for small to medium-sized businesses. Established in 2012, Blackpearl has annual recurring revenue of $2.8 million.
Fisher and Paykel Healthcare was down 27c to $24.05; and leading banks ANZ and Westpac fell 54c or 2.01 per cent to $26.36 and 51c or 1.98 per cent to $25.22 respectively. Solly said any fall in interest rates would compress the banks’ net margins.
AFT Pharmaceuticals was down 7c or 1.86 per cent to $3.70; Rakon decreased 4c or 3.31 per cent to $1.17; Move Logistics fell 4c or 4.04 per cent to 95c; and Geneva Finance was down 3c or 6.67 per cent to 42c.
Ebos Group was up 48c to $41.80; Ampol gained 50c or 1.86 per cent to $31.01; Summerset Group increased 10c to $9.60; Arvida Group added 3c or 2.44 per cent to $1.26; and Napier Port collected 14.7 per cent or 5.4 per cent to $2.87.
Leading retailers had a strong day, with The Warehouse Group up 8c or 2.74 per cent to $3; Briscoe Group gaining 17c or 3.48 per cent to $5.06; and Hallenstein Glasson increasing 14c or 2.55 per cent to $5.62.
Serko rose 18c or 7.29 per cent to $2.65; Ventia Services increased 8c or 2.84 per cent to $2.90; Channel Infrastructure added 4c or 2.88 per cent to $1.43; and Rua Bioscience gained 2.5c or 11.63 per cent to 24c.
NZ King Salmon Investments was down 0.005c or 2.13 per cent to 23c after the Conservation Department lodged an appeal to change conditions on the Blue Endeavour consent to farm in the open ocean. If the changes are made, the department will not oppose the granting of the consent by Marlborough District Council.