tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo close ad
tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Wednesday, October 27th, 6:26PM

Investments

rss
The Markets

NZ shares decline as A2 Milk pulls back

New Zealand shares declined as A2 Milk and Pushpay gave back much of the gains they won when the S&P and FTSE Russell indices were rebalanced on Friday.

Monday, June 21st 2021, 6:28PM

by BusinessDesk

The S&P/NZX 50 Index fell 52.57 points, or 0.4%, to 12,499.36. Within the index, 30 stocks fell, 18 rose and two were unchanged. Turnover was $161 million.

A2 Milk fell 3.7% to $6.50 after jumping more than 6% on Friday, and Pushpay Holdings declined 3.3% to $1.76 – after ending last week with a 4% surge.

Internet infrastructure firm Chorus fell 3.6% to an 18-month low $6.09. The stock has been sliding since late May when the Commerce Commission released its draft decision on the maximum allowable revenue the firm would be able to earn in the new regulatory regime.

Analysts have mixed views on the stock and valuations range between $7.60 and $6.20.

Shares of Air New Zealand fell 2.2% to $1.58 after analysts warned the airline was overvalued, even before investors get diluted in the approaching billion-dollar capital raising.

Forsyth Barr downgraded the stock in reaction to last week’s trading update in which the company said it would post an approximately $400m loss next financial year.

“In other words, the company’s return to profitability will take longer than we previously anticipated,” the analyst wrote. 

The airline will have to pay more than $300m of deferred tax next year, which a capital raising of about $1.2 billion will help pay.

Jarden already had a sell recommendation on the stock but trimmed another 15 cents from its target price. The research team now values the stock at just 95 cents a share.

“Given Air NZ’s requirement for what will likely be a highly dilutive capital raise, material ongoing near-term losses and lack of comfort on the timing and trajectory of any earnings recovery, the shares present a negatively skewed risk-reward profile,” they wrote.

Auckland International Airport fell 0.3% to $7.44. Jarden analysts today repeated a ‘sell’ recommendation for Sydney Airport, saying its earnings may not recover fully until 2025.

Pacific Edge had the day’s biggest gain, climbing 3.3% to $1.24, after US healthcare giant Kaiser began rolling out another of its cancer diagnostic products across its network.

Mercury NZ was up 1.6% at $6.40 on news it had purchased Trustpower’s retail business for $441m. This follows the $770m purchase of Tilt Renewables’ local assets in March.

Precinct Property sank 2.6% to $1.55 after it completed a $220m equity raising to buy two buildings with government tenants.

The money will be used to purchase the Wellington properties, with the surplus staying on the balance sheet to fund extra opportunities, such as purchasing an Auckland carpark that is adjacent to Commercial Bay.

The US dollar continued to gain after last week’s US Federal Reserve meeting, pushing the local currency to its lowest level against the greenback in the past three months.

Any gains the kiwi dollar may have made from strong GDP data were washed away and it was trading at 69.52 US cents at 3pm in Wellington, down from 70.05 cents on Friday.

The trade-weighted index was at 73.26 at 3pm, from 73.60 last week. The kiwi traded at 92.68 Australian cents from 92.73 cents, 76.56 yen from 77.18 yen, 58.61 euro cents from 58.79 cents, 50.33 British pence from 50.25 pence, and 4.4869 Chinese yuan from 4.5163 yuan.

Tags: Market Close

« a2 Milk jumps; Kiwi dips below 70 US cents‘Sanity’ returns to market »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

AM Update - Your morning business news update

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA 4.55 ▲3.25 ▲3.75 ▲3.99
ANZ 4.59 ▲3.84 ▲4.30 ▲4.54
ANZ Blueprint to Build 1.68 - - -
ANZ Special - ▲3.24 ▲3.70 ▲3.94
ASB Back My Build 2.04 - - -
ASB Bank 4.45 ▲3.25 ▲3.75 ▲3.99
Basecorp Finance 5.49 - - -
Bluestone ▲3.74 ▲3.54 ▲3.89 ▲4.09
BNZ - Classic - ▲3.24 ▲3.79 ▲3.99
BNZ - Mortgage One 5.15 - - -
BNZ - Rapid Repay 4.60 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Std, FlyBuys 4.70 ▲3.84 ▲4.39 ▲4.59
BNZ - TotalMoney 4.70 - - -
CFML Loans 5.15 - - -
China Construction Bank 4.49 4.70 4.80 4.95
China Construction Bank Special - 2.65 2.65 2.80
Credit Union Auckland 5.95 - - -
Credit Union Baywide 5.65 3.95 ▲4.10 -
Credit Union South 5.65 3.95 ▲4.10 -
First Credit Union Special 5.85 2.95 3.45 -
Heartland Bank - Online 2.25 1.85 2.35 2.65
Heretaunga Building Society 4.99 3.80 3.90 -
Lender Flt 1yr 2yr 3yr
HSBC Premier 4.49 2.19 2.45 2.69
HSBC Premier LVR > 80% - - - -
HSBC Special - 2.25 - -
ICBC ▲4.15 ▲2.89 ▲3.29 ▲3.49
Kainga Ora 4.43 2.88 3.28 3.59
Kainga Ora - First Home Buyer Special - 2.25 - -
Kiwibank 4.00 ▲4.14 ▲4.44 ▲4.84
Kiwibank - Offset 4.00 - - -
Kiwibank Special 3.75 ▲3.29 ▲3.59 ▲3.99
Liberty 5.69 - - -
Nelson Building Society 4.95 2.99 3.24 -
Lender Flt 1yr 2yr 3yr
Pepper Essential 4.79 - - -
Resimac 3.39 2.98 2.79 3.29
SBS Bank 4.54 3.05 3.45 3.75
SBS Bank Special - 2.55 2.95 3.25
Select Home Loans 3.49 3.34 2.99 3.34
The Co-operative Bank - First Home Special - ▲2.79 - -
The Co-operative Bank - Owner Occ 4.55 ▲2.99 ▲3.60 ▲3.89
The Co-operative Bank - Standard 4.55 ▼3.49 ▲4.10 ▲4.39
TSB Bank 5.34 ▲3.75 ▲4.20 ▲4.44
TSB Special 4.54 ▲2.94 ▲3.40 ▲3.64
Wairarapa Building Society 4.99 3.55 3.49 -
Lender Flt 1yr 2yr 3yr
Westpac 4.84 ▲3.79 ▲4.39 ▲4.59
Westpac - Offset 4.84 - - -
Westpac Special - ▲3.19 ▲3.79 ▲3.99
Median 4.57 3.24 3.70 3.99

Last updated: 27 October 2021 8:49am

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com