Wary investors sit back
Airport shares down after going ex-dividend Kiwi at A90c
New Zealand shares fell, dragged lower by election uncertainty and geopolitical fears, with Auckland Airport dropping to an eight-month low after going ex-dividend and Trade Me Group falling.
The S&P/NZX 50 Index dropped 30.82 points, or 0.4 per cent, to 7,777.4. Within the index, 32 stocks fell, 14 rose and four were unchanged. Turnover was $133 million.
Peter McIntyre, investment adviser at Craigs Investment Partners, said geopolitical turmoil and the upcoming general election were causing some investors to sit on the sidelines, while US markets have been closed overnight due to the Labor Day holiday.
“It’s a wary market at the moment — that North Korean tension, people are wondering what Trump’s going to do possibly, and then you put on top of that an election that is too close to call,” McIntyre said.
“The market has got a very cautious feel about it, we started fairly flat today but we’ve been weaker during the day.
“We’ll get a bit more flavour once that US market finishes tomorrow morning.”
Auckland International Airport
was the worst performer, down 2.1 per cent to $6.50 after going ex a 10.5c dividend.
“A lot of analysts, particularly on the institutional side, would say that it is overvalued,” McIntyre said.
“There’s good liquidity running through the stock as well, if investors are wanting to profit-take it’s an easy one to do that.”
Trade Me Group
to $4.59.
Sky Network
fell 1.9 per cent
Television
dropped 0.8 per cent to $2.59.
Sky TV’s shares hit an 18-year intraday low on Monday, after reports that global internet giant Amazon was making a play for New Zealand’s rugby broadcasting rights.
“Trade Me had a reasonable result, but the market is scared of Amazon and the potential it has in the South- ern Hemisphere, and how potentially it could take business away. Facebook is also becoming quite a competitor, so there are concerns about their business model five to 10 years out, and investors are realigning their thesis for Trade Me on that basis,” McIntyre said.
“Sky TV has been hammered on the same premise of Amazon — we’re really waiting for management to come up with a business plan,” he said.
“It’s exceptionally cheap at the moment, I think investors are happy just to get out in the meantime and see what happens there.”
was the best performer, up 1.2 per cent to $3.915, while rose 1 per cent to $26.50.
gained 0.9 per cent to $1.16. Trading activity rose in August, once again lifted by a strong rise in activity by smaller investors. Outside the benchmark index,
gained 0.6 per cent to 90.5c. Vero Insurance’s appeal against the Commerce Commission’s rejection of its planned takeover of Tower will be heard in January next year.
Spark New Zealand Xero NZX Tower
The New Zealand dollar fell in a seesaw day against the Aussie after Australian trade data, a central bank statement and ongoing jitters about North Korea’s military ambitions. The kiwi was trading at A90.01c at 5pm yesterday from A90.18c at 8am and A90.08c late on Monday. It was at US71.69c from US71.73c on Monday. The kiwi was trading at ¥78.39 from ¥78.76 late on Monday as the yen continued to benefit from safe-haven demand. It declined to €60.20c from
60.36c and was at 55.42p from 55.37p.