Dual-list banks leads Kiwi shares lower
Terrorist attacks and political jitters have investors pursuing greater certainty
New Zealand shares fell, led lower by dual-listed banks and Sky Network Television, while Air New Zealand extended last week’s gains. The S&P/NZX 50 Index dropped 5 points, or 0.067 per cent, to 7494.97. Within the index, 24 stocks fell, 22 rose and four were unchanged. Turnover was $184 million.
Market participants were anxious about terrorist attacks and global political events such as the British election, according to Shane Solly, director, portfolio manager and research analyst at Harbour Asset Management.
“We are seeing more of these investors wanting to buy higher certainty stocks,” he said. “Z Energy and Genesis Energy are companies that have got a degree of yield and income, which makes them attractive, especially as interest rates stay low.” rose 1.2 per cent to $7.70 gained 0.9 per
Z Energy Genesis Energy
and cent to $2.37.
Sky Network Television
was the worst performer, down 3.6 per cent to $3.50. dropped 2.6 per cent to $3.38 and fell 2.4 per cent to $4.39.
Corp A2 Milk Co SkyCity Entertain- ment Group
Australia and New Zealand Banking Group
dropped 3 per cent
Westpac Banking
to $28.70 and
declined 2.9 per cent to $30.96. The dual-listed banks had become less profitable with credit growth slowing and increased pushback from the Government on levies, Solly said. ANZ Bank New Zealand’s UDC Finance unit yesterday announced it had lifted first-half profit 11 per cent to $30.2m as it prepares for its sale to China’s HNA Group,
was the best performer, up 2.4 per cent to $2.97. The national carrier said its gas turbines business had won four contracts worth up to US$42m to
Air New Zealand
service and overhaul gas turbines that power much of the US Navy’s fleet. Solly said it was still being rewarded by the market after last week upgrading its earnings guidance.
Xero
gained 2.4 per cent to $26.10. The company wants to boost its pool for directors’ fees 64 per cent to cater for an extra two or three directors to guide what has become a much larger software company since the board’s pay was last reviewed three years ago. Xero has seven directors and a $850,000 pool, which it wants to raise to $1.4m. US71.34c in the morning and US71.18c on Monday. It rose to A95.53c from A95.37c on Monday. The New Zealand dollar rose to €63.53c from
63.19c and traded at 55.37 British pence from 55.31p.
The kiwi was at ¥78.66 from ¥78.70 and gained to 4.8656 yuan from 4.8422 yuan.
The trade-weighted index rose to 76.98 from 76.53 on Friday — before the three-day Queen’s Birthday weekend.