ASX not likely to resume trading in Air NZ shares

By KARYN SCHERER

Air New Zealand looks set to disappear from the Australian Stock Exchange permanently after the Government's decision this week to bail out the airline.

While hundreds of local investors continue to take a gamble on the company, it is increasingly unlikely that its shares will resume trading across the Tasman.

The Australian Stock Exchange suspended trading in the company's freely tradeable B shares on September 13.

ASX spokesman Gervase Green said yesterday that the exchange would make a decision in due course. But its policy was not to resume trading in shares that have been suspended for some time.

While this was not a hard-and-fast rule "just in terms of having a seamless return to market we would usually announce in advance what we are going to do. Obviously we haven't done so yet so you can read into that what you will."

Brokers believe it is unlikely the exchange will bother, because only 340 million shares will effectively be available for trading, giving the company a market capitalisation of only $100 million.

Turnover in Australia has always been light. Only a few hundred thousand shares typically change hands each week.

Macquarie Equities senior analyst Arthur Lim said that in the two weeks before trading was suspended, volume increased as people panicked and tried to get out. "There was also arbitrage between Australia and New Zealand, but I think they'll just fall by the wayside now."

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