Market talk - Earning season rolls on amidst global financial turmoil
NBR's Jason Walls and Craigs Investment Partner's Mark Lister discuss the latest in sharemarket news on NBR Radio and on demand on MyNBR Radio.
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Many top New Zealand companies have reported favourable earnings against the backdrop of looming financial turmoil.
Air New Zealand’s earnings show the company performed particularly well, with net profit up 24% to $327 million.
A contributing factor to this was an increase in passenger traffic.
Its share price has climbed 29% over the past 12 months.
Craigs Investment Partners private wealth research head Mark Lister says this is a good result for the airline.
“It’s amazing that an airline, which is inherently volatile, can perform so well given some of the uncertainty we’ve been seeing around the world,” he says.
Mr Lister says Auckland International Airport was also a “heavy hitter,” with an underlying profit of $176.4 million, up from $169.9 last year.
Metlifecare also showed some promising figures, with profit up 80%. But Mr Lister says the company’s build rate was lower than previously forecasted.
The earnings results this week come as share markets around the world have been extremely volatile.
“The Chinese share market continues to be pretty amazing to watch,” says Mr Lister.
But it’s important to keep the share market downturn in perspective, as although the Shanghai Composite index has fallen 32% since July, it’s still 70% above where it was a year ago.
“The massive fall that we have seen is just a reflection of it being overvalued,” Mr Lister says.
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NBR Radio
Thu, 27 Aug 2015
Thu, 27 Aug 2015
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Market talk - Earning season rolls on amidst global financial turmoil
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