Auckland Airport rallies after $1b placement; NZ market disconnects from offshore events
The S&P/NZX 50 Index increased 46.03 points, or 0.5 percent, to 9,809.85. Within the index, 41 stocks rose, seven fell, and two were unchanged. Turnover was $239.4 million.
Investors cleared out their portfolios yesterday to take part in the Auckland Airport placement, with the shares sold at $4.66 apiece to institutions in the bookbuild process. The airport operator's share sale was underwritten at a floor price of $4.50, a discount to the $5.04 price they closed at last week. The shares rose 6.9 percent to $5.385 when they resumed trading today.
Sam Trethewey, a portfolio manager at Milford Asset Management, said the local market had disconnected from offshore events and was driven by the recent spate of capital raising.
“The big one has been the Auckland Airport deal that saw the market down 1.7 percent yesterday and today we are seeing some recovery in some of the names that were sold as funding for the deal,” Trethewey said.
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