Airline leads index up amid mixed trading
Air NZ shares rise after strong report
New Zealand shares rose, although the market was mixed, with Air New Zealand gaining after strong operating metrics and A2 Milk Co falling from a record high.
The S&P/NZX 50 Index gained 2.50 points, or 0.04 per cent, to 7,065.22. Within the index, 23 stocks rose, 19 fell and eight were unchanged. Turnover was $168 million.
led the index, up 3.1 per cent to $2.365. In its monthly operating statistics for February, the national carrier reported a 2 per cent rise in revenue passenger kilometres compared with February 2016, with capacity up 5.3 per cent.
Short-haul passenger numbers
Air New Zealand
increased 2.2 per cent, while longhaul numbers rose 3.1 per cent.
“They really do have a cash cow when it comes to the New Zealand domestic market,” said James Smalley, director at Hamilton Hindin Greene. “At around $2.30 the market does seem to give it a bit of support.
“If the dollar falls it’s good for inbound tourism, but in reality, they want a dollar around these levels because their margin is ultimately a reflection of where the dollar is.”
gained 2 per rose 1.9 per cent
Summerset Group Chorus Westpac Banking Corp
cent to $5.08, to $4.23 and advanced 1.6 per cent to $37.38.
was the worst performer, down 3.4 per cent to $2.85, though
A2 Milk
that comes after a strong run in the month so far which culminated in it reaching a record $2.85 on Monday.
dipped 0.4
Spark New Zealand TeamTalk
per cent to $3.39, while gained 12 per cent to $1.04.
The telecommunications minnow has been in a war of words with Spark after independent adviser Grant Samuel & Associates found the underlying value of TeamTalk is between $1.52 to $2.11 per share — well above Spark’s 80c offer for it.
On Friday, TeamTalk announced it had agreed to sell a 70 per cent stake in its Farmside rural internet services provider to Vodafone New Zealand for $10m, almost half what Spark is willing to pay for the entire group.
Shareholders will vote on the plan next month at a special meeting
“It will be interesting to see whether Spark is going to sweeten the deal or, if they really do think it’s ridiculous, to walk away,” Smalley said.
“Either the market’s got it horrendously wrong or the independent advisers are making assumptions that don’t necessarily apply in the specific circumstances. It’s a very unusual set of circumstances.”
dropped 1.9 per cent to $3.10, while
fell 1.4 per cent
Mercury New Zealand Performance Glass
to $1.40.
Metro