Share trading mixed as Air New Zealand hits a two-year low


New Zealand shares were mixed as Air New Zealand hit a two-year low in the face of increased competition, while Tegel Holdings and Fletcher Building climbed.

The S&P/NZX50 Index gained 12.6 points, or 0.2 per cent, to 7,120.05. Within the index, 25 stocks fell, 13 rose and 12 were unchanged. Turnover was $131.7 million (£108.28 million).

Air New Zealand was the worst performer on the index, down 4.7 per cent to $1.715 (£1.41), and down 32 per cent this year.

Matt Goodson, managing director at Salt Funds Management said, “There are really three headwinds they’re facing”.

“First, in the last few days there has been a stronger oil price. Then overnight there was a dire warning from Cathay Pacific basically saying they’re going back to scratch and reviewing their business – they’re having much more direct competition from Chinese airlines who seem more interested in size than profitability. There’s also more evidence of rampant competition on routes affecting elements of Air New Zealand’s business.”

Risk Warning:

Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.


The author Paul