“They’ve certainly been in the headlines recently with their CDC Data Centres business, which is riding that AI thematic, particularly with that deal with Nvidia, as well as picking up that share of Contact.”
On Monday, Infratil paid $437.7m to buy a 4.92% stake in Contact from TECT Holdings, increasing its total investment in the power company to 14.3%.
Today, Infratil’s share price fell 1.2% or 15c to $12.34 on turnover worth $7.2m, while Contact Energy’s share price rose 15c or 1.61% to $9.45 after 1.7 million shares worth $16.6m changed hands.
Air New Zealand gave an update to the market, with the airline expecting to report a first-half pre-tax loss of $30m-$55m. A subdued economy and several grounded aircraft were given as reasons for the result.
“They’ve got headwinds on quite a number of fronts. They wanted a 2% to 3% uplift and they haven’t got that.
“Leisure is down, business of government is soft, engine lease costs are still unresolved, landing charges at Auckland Airport, just headwinds on multiple fronts.”
Air New Zealand’s share price was down 0.84% to 59c after 1.5 million shares traded on turnover worth $903,225.30.
Elsewhere, a2 Milk’s share price fell 20c or 1.91% to $10.29.
The latest Global Dairy Trade auction took place overnight Tuesday, with the price index dropping 1.4%, the fifth consecutive decline for the GDT auction.
“I spoke to someone from Fonterra last week and they said that demand wasn’t a problem, it was just there was a lot of supply in New Zealand and South America,” Smith said.
“The dairy sector has had a strong time of late, although what’s happening currently might mean things might not be potentially as strong over the next 12 months.”
The NZX50’s largest inhabitant also weighed on the market, with Fisher & Paykel Healthcare’s share price falling 2.1% or 75c to $35 after 747,833 shares changed hands on turnover worth $26.2m.
The price of gold also fell sharply with the largest one-day decline in about 12 years, with gold smartshares down 5.31% on the NZX.
International news
Most stock markets extended gains Tuesday on signs that China-US trade tensions were easing and as investors digested a deluge of generally good earnings.
Tokyo hit another record as Japan swore in new Prime Minister Sanae Takaichi and brought an end to a period of political uncertainty.
But the price of gold tumbled more than 6% on profit-taking after recent record highs for the precious metal, seen as a safe haven investment. Silver tumbled more than 8%.
On Wall Street the Dow surged to a fresh all-time record while the Nasdaq edged lower as several leading industrial companies reported solid results.
Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.
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