Fletcher Building nudged up on the ASX after the building products maker cut a deal with the New Zealand Transport Agency over cost blow-outs on the Puhoi to Warkworth road north of Auckland, clearing one of its remaining issues ahead of next week’s investor briefing.
And while New Zealand’s NZX was closed for the Matariki public holidays, markets across Asia were mixed as investors continued to fret about the heightened tensions in the Middle East.
The ASX was weaker in late trading as Commonwealth Bank of Australia came off its peak.
And New Zealand prime minister Christopher Luxon met with Chinese President Xi Jinping, raising the importance of the international rules-based system to the South Pacific nation.
Matariki
New Zealand’s NZX was closed for the Matariki public holiday and Wall Street was closed on Thursday as the US observed Juneteenth, leaving markets across Asia to continue to ponder the heightened tensions in the Middle East.
US President Donald Trump said he’ll make up his mind on whether to join Israel’s bombing of Iran within two weeks.
The kiwi dollar traded at 60.05 US cents at 5pm in Auckland, up from 59.86 cents at 7am and 59.94 cents yesterday.
Meanwhile, Australia’s S&P/ASX 200 index was down 0.3% in late trading, with the big four banks among the decliners, including CBA which eased from a record.
Dual-listed New Zealand companies were broadly stronger in Australian trading with their home market closed. Spark New Zealand rose 0.7% in late trading, Fisher & Paykel Healthcare advanced 1.1%, Auckland International Airport gained 1% and Ebos was up 0.7%. Infratil was down 0.2%.
Air New Zealand was among the laggards, down 1.9% in late trading ahead of Virgin Australia rejoining the ASX on Monday.
Holiday deals
Fletcher Building rose 0.3% after saying its joint venture with Acciona to build the Puhoi to Warkworth road north of Auckland cut a deal with the NZTA and Northern Express Group, having sought to recover costs from the covid-19 pandemic and weather disruption which delayed the road’s opening.
The settlement was less than Fletcher’s provision on the project and it will recognise a loss of $16.4 million, with the group receiving extra cash of $56 million.
A separate claim is still being negotiated with insurers.
“This represents further progress in closing out the legacy project issues that have absorbed significant management time and cost,” managing director Andrew Reding said in a statement.
Fletcher will update investors on its strategic review next week, hosting them at its headquarters in Auckland.
Meanwhile, NZ prime minister Christopher Luxon met with Chinese President Xi Jinping, discussing trade and security, and highlighting the importance of being able to air different views.
“I raised the importance to New Zealand of the international rules-based system, as well as the key role that China can play in helping to resolve global challenges, such as the war in Ukraine,” Luxon said in a statement.
Reporting by Paul McBeth. Image from Matthew Henry on Unsplash.
