You are using an older browser version. Please use a supported version for the best MSN experience.

Auckland Airport leads local index higher

NZ NewswireNZ Newswire 30/08/2016 Sophie Boot

Auckland International Airport led the index, up 2.9 per cent to $7.51. © Fiona Goodall/Getty Images Auckland International Airport led the index, up 2.9 per cent to $7.51. New Zealand shares rose in light trading as earnings trickled off, with Auckland International Airport leading the index while A2 Milk Co continued to drop.

The S&P/NZX50 Index gained 20.69 points, or 0.3 per cent, to 7,387.95. Within the index, 22 stocks rose, 20 fell and nine were unchanged. Turnover was $124.1 million.

Auckland International Airport led the index, up 2.9 per cent to $7.51. The listed airport announced its annual results on Monday, with net profit rising 17.4 per cent to $262.4 million while underlying profit rose 20.6 per cent to $212.7 million.

"That was a pretty strong result, it certainly beat our expectations and even though it trades at a lofty multiple it's a quality asset," said Peter McIntyre, investment adviser at Craigs Investment Partners.

Fisher & Paykel Healthcare gained 2.2 per cent to $9.88 and Genesis Energy rose 2.1 per cent to $2.22.

A2 Milk Co was the biggest decliner, down 4 per cent to $1.90. It's dropped 17.4 per cent since last Wednesday when it announced a return to full-year profit, meeting guidance, and a 127 per cent jump in revenue that was driven by infant formula sales in Australia and China.

In the US, progress is behind A2's schedule, which it attributed to delays in achieving distribution with a number of larger retailers.

"There's some concern over whether they can drive growth in the US market, which would be a catalyst for higher earnings, and maybe that's dampened down future earning expectations so people have taken some money off the table," McIntyre said.

Chorus fell 3.5 per cent to $4.39 and Z Energy dropped 1.4 per cent to $8.51.

Outside the main index, Tenon gained 7.1 per cent to $2.70. The Taupo-based wood processor's US operations are under offer from a New York-based private equity firm for US$110 million that the company's directors say will allow a substantial capital return to shareholders, despite a NZ$31 million writedown in the carrying value of the assets to be sold.

Energy explorer New Zealand Oil & Gas rose 6 per cent to 53 cents, Pyne Gould Corp was unchanged at 22 cents and Veritas Investments was unchanged at 47 cents.

image beaconimage beaconimage beacon