Shares creep up after US inauguration
Gains by Auckland Airport, Kiwi Property Group bolster thin market as Comvita issues profit warning
NZ shares eked out gains on the first day of trading after US President Donald Trump’s inauguration as a rise in Auckland International Airport and defensive stocks such as Kiwi Property Group offset a sharp fall in Comvita.
The S&P/NZX 50 Index rose 19.36 points, or 0.3 per cent, to 7067.84. Within the index, 26 stocks gained, 16 fell and eight were unchanged. Turnover was a light $83 million due to a holiday in Wellington.
“The big news of the day was the pretty disappointing profit warning from Comvita,” said Brad Gordon, investment adviser for Hobson Wealth Partners.
Comvita
dropped 17 per cent to $6.50. Earlier yesterday the manuka honey products maker warned annual earnings will tumble by about twothirds as the nation’s wet and windy weather saps the honey harvest and after slow sales via China’s informal trading channels. That news also weighed on
which shed 4.4 per
A2 Milk Co,
cent to $2.17, as investors are concerned they are also facing challenges after China moved to tighten regulations to crack down on the grey market.
“The avenues for direct selling into China are much tougher,” Gordon said. In the other direction,
rose 0.7 per cent to $6.85, helping offset some of the slide in Comvita. Gordon said strong visitor numbers and an improving regulatory environment is a “confluence of good news” for the stock.
Auckland Airport Air New Zealand Chorus
added 0.7 per cent to $2.18. rose 0.7 per cent to $4.17. Gordon noted the stock has had a “good run of late”, also on the potential for a better regulatory environment.
added 0.6 per cent to $3.52, while construction firm
added 0.7
Zealand Kiwi Property Spark New Fletcher Building
per cent to $10.45.
New Zealand Refining Co
was the top performer on the benchmark index rising 1.5 per cent to $2.69, paring some of Friday’s losses. was also a top performer on the benchmark index, gaining 1.4 per cent to $1.44, possibly a defensive play as markets await more clarity on Trump’s policies for the world’s largest economy.
“There is a bit of nervousness out there,” Gordon said.
Analysts said that equity and foreign exchange markets were likely to tread water until there was more detail on his plans to accelerate economic growth, principally by easing taxes and regulation.
shed 1.4 per cent to $3.43 while
Scales Corp Summer- set Group
was down 0.8 per cent at $4.71.
Hellaby Holdings
ended unchanged at $3.58 after ASXlisted auto firm Bapcor installed four new directors at Hellaby Holdings after securing control of the NZ firm.
Last week Hellaby’s independent directors said they supported the takeover, having previously argued that it undervalued the company. The offer closes on February 7. Bapcor has acceptances for 78.4 per cent of Hellaby’s shares.