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.”
