Market commentary

AUCKLAND: Skellerup Holdings, a quiet performer with more than 100 years of business experience, was the shining light as a cautious New Zealand sharemarket drifted downwards.

The S&P/NZX 50 Index traded in a narrow range, closing down 40.37 points, or 0.32%, to 12,633.60. This followed the trend on Wall St and the Australian ASX.

There were 63 gainers and 71 decliners on moderate volume of 50.65 million share transactions worth $145.69 million.

Hamilton Hindin Greene investment adviser Jeremy Sullivan said the local market was facing some headwinds.

‘‘We are into the reporting season now and so far there are no big shocks. The results have been as expected — companies who are performing and others who have large writedowns.

‘‘Inflation is forecast to increase slightly, wholesale interest rates are ticking up, and we’ve seen a lot of profittaking in Contact and Meridian in an armwrestle between the passive and active investment funds,’’ Mr Sullivan said.

Skellerup Holdings, selling dairy rubberware, roofing, plumbing and marine foam decking products globally, provided the highlight of the day, recording a record net profit of $19.46 million, up 61%, for the six months ending December. Skellerup breezed through the $4 mark, closing at $4.15 — up 10c, or 2.47%.

Auckland International Airport described the impact of the Covid19 pandemic as unprecedented after suffering major declines — as expected — for the six months ending December, and its share price fell 7c to $6.90.

The airport’s revenue fell 65% to $131.5 million compared with the previous corresponding period, operating earnings (ebitdafi) was down 68.4% to $88.2 million, and net profit slumped 80.9% to $28.1 million. Passenger movements crumbled 73.4% to 2.8 million. Auckland Airport expects to make a net loss of $35 million$55 million for the 2021 financial year.

SkyCity Entertainment was also badly affected by Covid19, its revenue falling 37.7% to $449.9 million and profit 76.1% to $78.41 million.

Air New Zealand fell 5c, or 3.13%, to $1.55; Chorus shed 17c, or 2.06%, to $8.10; Summerset Group Holdings was down 10c to $12.92; and Infratil declined 7c to $7.41.

With the energy stocks having a wellearned quiet day, Fisher & Paykel Healthcare gained 15c to $32.40; Freightways climbed 24c, or 2.21%, to $11.10; Ebos Group was up 19c to $29.30; Port of Tauranga increased 11c to $7.54; and Comvita picked up 5c to $3.25. —