New Zealand shares eked out gains on the first day of trading after US President Donald Trump's inauguration as a rise in Auckland International Airport and defensive stocks like Kiwi Property Group offset a sharp fall in Comvita.
The S&P/NZX 50 index rose 19.37 points, or 0.3 per cent, to 7,067.840. Within the index, 26 stocks gained, 16 fell and eight were unchanged. Turnover was a light $83 million due to a holiday in the capital city of Wellington.
"The big news of the day was the pretty disappointing profit warning from Comvita," said Brad Gordon, investment adviser for Hobson Wealth Partners. Comvita ended down 17 per cent at $6.50. Earlier Monday the manuka honey products maker warned annual earnings will tumble by about two-thirds as the nation's unseasonably wet and windy weather saps the honey harvest and slow sales via China's informal trading channels.
That news also weighed on A2 Milk Co, which shed 4.4 per cent to $2.17, as investors are concerned they are also facing challenges after China moved to tighten regulations in a bid to crack down on the grey market - or 'daigou'. "The avenues for direct selling into China are much tougher," said Gordon.
In the other direction, Auckland Airport rose 0.7 per cent to $6.85, helping offset some of the slide in Comvita, said Gordon. He said strong visitor numbers and an improving regulatory environment is a "confluence of good news" for the stock. Air New Zealand added 0.7 per cent to $2.18. Chorus rose 0.7 per cent to $4.17. Gordon noted the stock has had a "good run of late," also on the potential for a better regulatory environment. Spark New Zealand added 0.6 per cent to $3.52 while construction company Fletcher Building added 0.7 per cent to $10.45.