Fletcher Building leads stockmarket fall

Air NZ’s share price rises to hit 16-year high as benchmark index drops 0.5 per cent amid light trading

New Zealand shares dropped, led by Fletcher Building and Auckland International Airport, while Air New Zealand reached a 16-year high.

The S&P/NZX 50 Index fell 38.18 points, or 0.5 per cent, to 7,583.95.

Within the index, 25 stocks fell, 19 rose and six were unchanged. Turnover was $103 million.

The market “is quieter in terms of volume but we are still seeing positive trends in some stocks like Air New Zealand”, said Shane Solly, director, portfolio manager & research analyst at Harbour Asset Management.

“We’ve certainly benefited from some of the start of the quarter inflows of capital pushing our market along. Given we’re in a holiday impacted period, we’re holding up quite well.”

Air New Zealand

was the best performer, rising 2.2 per cent to $3.485, the highest it has traded since 2001. The stock has gained 55 per cent this year, bolstered by improved guidance for fullyear 2017 earnings before taxation to exceed $525m.

led the index lower, down 2.4 per cent to $7.81. Solly said the stock was one which people would be focussed on in the upcoming reporting season. It has dropped 25 per cent this year. to

Fletcher Building Auckland Airport

and

International

declined 2.3 per cent $6.915, fell 2.1 per cent to $1.385

Kiwi Property Group Goodman Property Trust

tot dipped 2 per cent to $1.225. Retirement operators gained. advanced 1.5 per cent to $4.76, gained 1.1 per cent and rose 0.9 per cent

Metlifecare

$5.34,

Healthcare

village

Summerset Ryman

to $8.65.

“There’s a lot of noise out there about what a slowing housing market does and doesn’t do for listed property companies, you’ve got to look through the cycle,” Solly said.

“It’s a sector that has some benefit from structural change in the form of an ageing population.

“That sector as a whole is positive on the day — there have been some negative comments out there, the market is starting to think about the other side of that.”

Kathmandu Holdings Xero CBL Corp

rose 1.9 per cent to $2.15, while gained 1.8 per cent to $25.75.

rose 1.2 per cent to $3.34.

The Auckland-based credit surety and financial risk insurer has continued its acquisition spree of recent years with the purchase of a 40 per cent stake in Allied Risk Holdings for 1.38m. It will use the Irish professional insurer’s senior management to populate its own European executive team.

Outside the benchmark index, was unchanged at $1.06.

The listed property investor and fund manager has sold one of its properties for $30m, which it says will be used to pay down debt and fund future acquisitions.

Augusta Capital