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: Friday, November 1st, 10:39AM

Investments

rss
The Markets

NZ shares fall as investors make way for $1b Auckland Airport placement

New Zealand shares fell as investors freed up cash to take part in the $1 billion placement of new Auckland International Airport shares. Kiwi Property Group, Contact Energy and Fisher & Paykel Healthcare were all off the pace today.

Monday, April 6th 2020, 6:29PM

by BusinessDesk

The S&P/NZX 50 Index dropped 171.36 points, or 1.7 percent, to 9,763.82. Within the index, 36 stocks fell, eight rose, and six were unchanged.

Auckland Airport shares were halted today at $5.04 to allow for a $1 billion placement to institutional investors at a discounted $4.50 a share. And the airport plans to raise another $200 million through a share purchase plan. The fully underwritten offer wasn't first run past cornerstone shareholder Auckland Council, which stands to get heavily diluted if it doesn't participate.

The airport said it needs to shore up its balance sheet as the pandemic causes nations to shut their borders and restrict domestic travel. The capital raising is almost 1 percent of the NZX's $136.2 billion equity market capitalisation, and is expected to attract international investors looking for cheap infrastructure assets.

Peter McIntyre, an investment adviser at Craigs Investment Partners, said the capital raising was already being felt on the local market as investors sold down other stocks to take part.

“Compared to sentiment offshore, the NZX50 is the only exchange in the red,” he said.

“I think the magnitude of the Auckland Airport capital raise has surprised the market and there has been some rotation occur.”

The airport is the second company to seek money from investors to shore up its balance sheet after outdoor goods retailer Kathmandu Holdings announced plans to raise $207 million at a steep discount. Kathmandu led the market lower, falling 9.1 percent to 70 cents.

McIntyre said investors were reacting negatively to the prospect that further capital raisings would be coming down the line, depressing share prices further.

“Probably the property companies will be one sector that potentially will have more capital raisings as well.“

Kiwi Property fell 7.2 percent to 83.5 cents, Goodman Property Trust fell 3.2 percent to $2.12 and Argosy Property declined 1.1 percent to 88.5 cents.

“A number of investors are concerned about tenant renewal and if we go into a prolonged lockdown, what the shape of some businesses that are tenants are going to be in post-covid,” McIntyre said.

Vista Group International was down 9 percent at $1.11

Tourism Holdings decreased 4 percent to 96 cents and Air New Zealand declined 2.3 percent to 84 cents.

“Inbound travel from outside New Zealand looks like it is closed for 12 months, with a potentially slow recovery in passenger numbers,” McIntrye said.

Refining NZ declined 3.5 percent to 84 cents after it said it would extend its reduced production for another two months in response to weak demand for fuel.

Meridian Energy declined 1.8 percent to $4.35, Contact Energy fell 3.9 percent to $5.71, Genesis Energy decreased 3.1 percent to $2.49 and Mercury NZ slipped 3.1 percent to $4.04.

Ebos Group fell 4 percent to $21.60 and F&P Healthcare decreased 3.8 percent to $29.40. Fletcher Building fell 3.5 percent to $3.33.

Spark New Zealand gained 0.9 percent. McIntyre said telecommunications is a sector in hot demand and Spark has become a defensive stock in the current market. Chorus was unchanged at $6.95.

Australia & New Zealand Banking Group posted the day's biggest gain, up 3.7 percent at $16.98 and Westpac Banking rose 2.9 percent to $16.60.

Tags: Market Close

« NZ shares rise; Tourism Holdings rallies on joint venture exitAuckland Airport rallies after $1b placement; NZ market disconnects from offshore events »

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
Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 5.44 - - -
AIA - Go Home Loans 7.99 5.99 5.69 5.69
ANZ 7.89 6.59 6.29 6.29
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 5.99 5.69 5.69
ASB Bank 7.89 5.99 5.69 5.69
ASB Better Homes Top Up - - - 1.00
Avanti Finance 8.40 - - -
Basecorp Finance 9.60 - - -
BNZ - Classic - 5.99 5.69 5.69
Lender Flt 1yr 2yr 3yr
BNZ - Mortgage One 7.94 - - -
BNZ - Rapid Repay 7.94 - - -
BNZ - Std 7.94 5.99 5.69 5.69
BNZ - TotalMoney 7.94 - - -
CFML 321 Loans 6.20 - - -
CFML Home Loans 6.45 - - -
CFML Prime Loans 8.25 - - -
CFML Standard Loans 9.20 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 5.79 - -
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Owner Occ 7.65 5.99 5.75 5.69
Co-operative Bank - Standard 7.65 6.49 6.25 6.19
Credit Union Auckland 7.70 - - -
First Credit Union Special - 6.40 6.10 -
First Credit Union Standard 8.50 7.00 6.70 -
Heartland Bank - Online 7.49 ▼5.65 ▼5.55 ▼5.55
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.00 6.50 -
ICBC 7.49 5.99 5.65 5.59
Kainga Ora 8.39 7.05 6.59 6.49
Kainga Ora - First Home Buyer Special - - - -
Lender Flt 1yr 2yr 3yr
Kiwibank 7.75 6.89 6.59 6.49
Kiwibank - Offset 8.25 - - -
Kiwibank Special 7.75 5.99 5.69 5.69
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 8.44 ▼6.39 ▼6.09 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
SBS Bank 7.99 6.95 6.29 6.29
SBS Bank Special - ▼6.15 5.69 5.69
SBS Construction lending for FHB - - - -
Lender Flt 1yr 2yr 3yr
SBS FirstHome Combo 5.44 ▼5.15 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.75 - - -
TSB Bank 8.69 6.79 6.49 6.49
TSB Special 7.89 5.99 5.69 5.69
Unity ▼7.64 5.99 5.69 -
Unity First Home Buyer special - 5.49 - -
Wairarapa Building Society 8.50 ▼6.19 ▼5.79 -
Westpac 8.39 6.89 6.39 6.39
Westpac Choices Everyday 8.49 - - -
Westpac Offset 8.39 - - -
Lender Flt 1yr 2yr 3yr
Westpac Special - 6.29 5.79 5.79
Median 7.99 6.17 5.79 5.69

Last updated: 30 October 2024 9:36am

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