Earnings season ends on a sour note; index changes boost volume

The S&P/NZX 50 index increased 43.56 points, or 0.5 percent, to 9,325.03. Within the index, 26 stocks rose, 18 fell, and six were unchanged. Turnover was $247.3 million, with re-weightings to the MSCI index driving up the volume of trading.

The bulk of companies with December and June balance dates finished out the latest earnings season. A few stragglers who have delayed their reports, such as Vital Healthcare Property Trust, are still to come. Its units increased 0.5 percent to $2.115.

Air New Zealand was the last of the major companies to report, having already laid the groundwork for a weak result when it downgraded guidance in January. Today, it reported a 35 percent slide in first-half earnings as rising fuel costs, slower growth in passenger numbers, and disruptions caused by engine issues weighed on its operations. The shares dropped 3.5 percent to $2.47, the lowest in almost two years. Almost 3.8 million shares were traded, more than three times its 90-day average.

Shane Solly, a portfolio manager at Harbour Asset Management, said there were some positives to take from the airline's result, such as its restructuring plans. While the growth trajectory is now flatter, it is still positive.