KMD Brands sinks on recapitalisation fears; NZX50 slides

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KMD Brands sank to a new low as the retail chain led the S&P/NZX 50 index lower, with reports of a potential recapitalisation spooking already nervous investors.

The benchmark index fell for a third day, with travel and tourism companies including Air New Zealand, SkyCity Entertainment Group and Auckland International Airport weighing on the bourse as oil prices continued to rise, with no end in sight for the conflict in the Middle East.

Meanwhile, Channel Infrastructure rallied after Forsyth Barr analysts pointed to the import terminal as one of the few safe harbours in a world of rising oil prices, while Mainfreight and Freightways advanced after the courier operator’s chief talked up his firm’s ability to pass on rising costs.
And Fonterra Cooperative Group chief executive Miles Hurrell announced his exit from the world’s biggest dairy exporter, saying he’ll end a 25-year stint with the company in six months.

Still nervous