MARKET CLOSE: NZ Shares fall, led by Air NZ & SKC

MARKET CLOSE: NZ Shares fall, led by Air NZ and SkyCity

By Jason Krupp

Sept. 8 (BusinessDesk) – New Zealand shares ended a five day winning streak as a combination of global uncertainty and the fallout from the Christchurch earthquake kept investors on the sidelines. Air New Zealand Ltd. and SkyCity Entertainment Group led the bourse lower after the stocks went ex-dividend.

The NZX 50 fell 12.9 points, or 0.4%, to 3,161.2. Within the index 24 stocks fell, 12 rose and 14 were unchanged. Turnover on the day was $76.3 million.

“It has been a big week with the Christchurch earthquake, the Australian political situation and the European banks, and uncertainty seems to be keeping investors on the sidelines,” said Karl Willscroft, a trader at Direct Broking. “As a result volumes have been light, and in that kind of market it doesn’t take much of a movement to move the market one way or the other.”

Air New Zealand, the national carrier, fell 5.1% to $1.28 after the airline paid a final dividend of 4 cents a share, pacing decliners on the day. The national carrier said yesterday it was slashing the cost of lead-in economy fares, and introducing four new in-flight product options for customers on flights between New Zealand, Australia and the Pacific Islands.

SkyCity, the casino and hotel operator, fell 3.4% to $2.87 after paying its 9.25 cent final dividend.

Shares in AMP Ltd., the Australian financial services company, fell 2.6% to $6.41 after rating agency Fitch Rating said Australia’s non-life insurers’ reinsurance costs are likely to rise in the wake of the Christchurch earthquake, with Fitch putting the bill somewhere between $1.5 billion and $6 billion.

Treasury Secretary John Whitehead put the cost of damage caused by the 7.1 magnitude quake in the “ball-park” of $4 billion, and told a media conference in Wellington the department is still assessing the impact on production and replacing assets.

Steel & Tube Holdings, which makes building materials for the construction industry, rose 0.8% to $2.42 and Fletcher Buildings Ltd., the biggest company on the NZX 50, rose 0.1% to $8.16, with both companies gaining this week.

Shares in ING Property Trust, the listed office space investor, were unchanged at 71 cents after the company announced the sale of a retail property in Manukau and the acquisition of another in St Lukes. The Auckland properties are both valued at $10.5 million. The sale of the Manukau property was ahead of its $10.25 million book value, but down on the $16.4 million it paid in 2007. Sister company ING Medical Trust rose 0.8% to $1.23.

Goodman Fielder Ltd., the food ingredient maker, rose 2.3% to $1.79, pacing gainers on the day. Cavalier Corp., New Zealand’s only listed carpet maker, rose 1.2% to $2.65, and Abano Healthcare Group, the retirement village operator, rose 1% to $5.15.

OceanaGold Corp., which operates the operator of the Macraes goldfield, rose 1.3% to $4.80, after chief executive Paul Bibby resigned, citing personal reasons. Chairman Jim Askew will become executive chairman in the interim while the gold miner searches for a permanent replacement.

L&M Energy Ltd., the coal seam gas explorer, rose 9.5% to 13 cents after the company announced yesterday that it had raised $1.4 million in a share purchase plan, adding to its placement in July. Some 15% of the company’s shareholders participated in the offer, buying shares at 9 Australian cents on the ASX and 11 cents on the NZX.

(BusinessDesk)

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