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The Markets

Air NZ warning weighs on tourism; NZ shares fall

New Zealand shares fell, led lower by Air New Zealand, as the national carrier's earnings and softer outlook weighed on other tourism-related companies. Auckland International Airport and Tourism Holdings fell.

Wednesday, January 30th 2019, 6:31PM

by BusinessDesk

The S&P/NZX 50 index declined 80.86 points, or 0.9 percent, to 8,925.52. Within the index, 26 stocks fell, 17 gained, and seven were unchanged. Turnover was $193.4 million.

Air New Zealand hit a three-month low after warning its annual earnings will fall by as much as 37 percent. The airline expects pre-tax earnings of $340-400 million in the year ending June 30, downgrading its forecast due to global issues with Rolls Royce engines disrupting schedules. The stock ended the day down 13 percent at $2.83 on a volume of 3.1 million, more than three times it 90-day average.

"One positive has been the dividend policy is unchanged at the moment - that's a positive for investors," said Peter McIntyre, an investment advisor at Craigs Investment Partners.

The downgrade flowed through to other tourism-related stocks, including rental motor home operator Tourism Holdings and Auckland Airport, and might indicate signs of global economic growth slowing down, he said. Tourism Holdings dropped 6.1 percent to $4.80 on a volume of 434,000 - more than twice the average. Auckland Airport fell 3.5 percent to $7.27 on a volume of 1.8 million.

Casino operator SkyCity Entertainment Group decreased 0.3 percent to $3.78. McIntyre said it held up reasonably well after raising its earnings guidance yesterday.

Fisher & Paykel Healthcare was the most traded stock on a volume of 4.7 million. Its three-month average volume is 613,000. The breathing mask maker fell 1.7 percent to $12.48, extending its decline as an analyst downgrade of rival ResMed weighed on the stock. McIntyre said the strong currency added to the tone, given F&P Healthcare's reliance on exports.

Spark New Zealand fell 1.6 percent to $3.99 on a volume of 3.7 million, slightly above its average. Infratil increased 0.8 percent to $3.775 on a volume of 1.7 million, three times its average. Fletcher Building was unchanged at $4.98 on a volume of 1.6 million.

Of the other companies trading on volumes of more than one million shares, Meridian Energy rose 1.6 percent to $3.57, Contact Energy increased 0.2 percent to $6.02, Trade Me decreased 0.3 percent to $6.34, Mercury NZ gained 0.7 percent to $3.56, Chorus was up 1.2 percent at $4.90, and Kiwi Property Group advanced 0.7 percent to $1.415.

Z Energy fell 1.5 percent to $5.97 and Heartland Group was down 1.4 percent at $1.38 after announcing changes to their executive teams.

Outside the benchmark index, QEX Logistics rose 0.8 percent to $1.20 after saying it expected increased revenue from a new distribution deal with Danone.

Tags: Market Close

« Not a good day on the sharemarket amid ongoing concerns about global growthKiwi bourse joins global rally as Fed poised to keep rates low; Air NZ falls again »

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Lender Flt 1yr 2yr 3yr
ANZ 5.19 4.19 4.25 4.49
ANZ Special - 3.69 3.75 3.99
ASB Bank 5.20 4.25 4.19 4.39
ASB Bank Special - 3.75 3.69 3.89
BNZ - Classic - 3.69 3.75 3.99
BNZ - Mortgage One 5.90 - - -
BNZ - Rapid Repay 5.35 - - -
BNZ - Std, FlyBuys 5.30 4.45 4.35 4.55
BNZ - TotalMoney 5.30 - - -
Credit Union Auckland 5.95 - - -
Credit Union Baywide 6.15 4.95 4.95 -
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Credit Union North 6.45 - - -
Credit Union South 6.45 - - -
Finance Direct - - - -
First Credit Union 5.85 - - -
Heartland 6.70 7.00 7.25 7.85
Heartland Bank - Online - - - -
Heretaunga Building Society 5.75 4.80 4.95 -
Housing NZ Corp 5.19 4.29 4.29 4.49
HSBC Premier ▼5.79 ▼3.65 ▼3.69 ▼3.85
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
Lender Flt 1yr 2yr 3yr
ICBC 5.65 3.85 3.95 3.89
Kiwibank 5.80 4.30 4.40 4.74
Kiwibank - Capped - - - -
Kiwibank - Offset 5.15 - - -
Kiwibank Special - 3.55 3.65 3.99
Liberty 5.69 - - -
Napier Building Society - - - -
Nelson Building Society 5.70 4.69 4.79 -
Resimac 5.30 4.86 4.14 4.19
RESIMAC Special - - - -
SBS Bank 5.29 4.85 5.05 5.49
Lender Flt 1yr 2yr 3yr
SBS Bank Special - 3.78 3.78 3.99
Sovereign 5.30 4.35 4.29 4.55
Sovereign Special - 3.85 3.75 4.05
The Co-operative Bank - Owner Occ 5.15 3.79 3.84 3.99
The Co-operative Bank - Standard 5.15 4.29 4.34 4.49
TSB Bank 6.09 4.65 4.59 4.85
TSB Special 5.29 3.85 3.79 4.05
Wairarapa Building Society 5.70 4.85 4.99 -
Westpac 5.34 4.69 4.79 5.19
Westpac - Offset 5.34 - - -
Westpac Special - 3.69 3.75 3.99
Median 5.50 4.29 4.25 4.19

Last updated: 23 August 2019 8:51am

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