MARKET CLOSE: NZ shares fall; Auckland Airport drops

Monday 23rd March 2009

Shares fell, pushing the NZX 50 Index lower for a second day, after Auckland International Airport report a drop in passenger traffic and a rise in the price of oil weighed on transport companies.

The NZX 50 fell 7.6%, or 0.3%, to 2591.42. Within the index, 20 stocks fell, 17 rose and 13 were unchanged. Turnover was a mediocre $59.6 million.

The New Zealand market missed out on a rally that drove stocks higher in Australia and Japan today. In Sydney, the S&P/ASX 200 Index gained 2.2% to 3543.50 in late afternoon trading. Westpac Banking Corp. led gains in bank shares on optimism about the Obama administration's plans to soak up mortgage-related assets from lenders in the U.S.

BHP Billiton, Rio Tinto and Woodside Petroleum advanced as prices rose for oil and metals. In Tokyo, the Nikkei 225 Index gained 2.5% to 8147.82, led by banks including Mitsubishi UFJ Financial Group.

In New Zealand, Auckland Airport fell 1.7% to $1.70 after reporting overseas passenger numbers dropped 6.9% last month as the global downturn sapped demand for travel.

Total international passenger movements fell to 592,535 in February, from 636,293 a year earlier, the airport company said in a statement. The biggest drop-off was in people traveling from the U.S., down 20%, China, down 19.7%, and the U.K., with a decline of 16.5%.

Air New Zealand was unchanged at 88 cents, having declined 8.3% this year. Last week the airline reported a 14% decline in long-haul traffic in February, reflecting a downturn in passengers on routes to North America, the U.K. and Asia.

New Zealand Farming Systems Uruguay fell 3.9% to 75 cents. The stock has climbed 30% this year after it gained a credit rating to raise funds in Uruguay, the first step in resuming its dairy conversion programme.

PGG Wrightson, which part owns Farming Systems and manages the dairy company, fell 1.6% to $1.20.

Pike River Coal declined 3.8% to 76 cents and Contact Energy fell 3.3% to $5.90.

Freightways slipped 2.8% to $2.79 and Mainfreight slipped 1% to $3.91 as the price of crude oil for May delivery rose 1.6% to US$52.90 a barrel.

APN News & Media, publisher of the New Zealand Herald, soared 42% to $1.70, though only 500 shares changed hands today.

Australia & New Zealand Banking Group rose 5.4% to $18.40, following gains in financial in Australia.

Businesswire.co.nz

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