How are the 5 NZX infrastructure stocks faring amid COVID-19 pandemic?


  • Playing a significant role in the progression of the country, infrastructure stocks are of prime importance.
  • In the June quarter 2021, New Zealand’s building activity experienced a rise when compared to the preceding quarter.
  • Steel & Tube Holdings to schedule a virtual ASM towards the end of this month.

Infrastructure stocks are the backbone of an economy. They play an instrumental role in the faster economic growth as they help to lay down the necessary structure for road and rail transport, airports, power, energy, data, and communications, etc., within the country.

Image source: © 2021 Kalkine Media New Zealand Ltd, data source- Stats NZ

As per Stats NZ, in the June quarter of 2021, New Zealand witnessed a growth of 2% in its building activity in comparison to the March quarter, driven by a 4.2% climb in the country’s residential building activity.

Also, the recent lockdowns did not have much influence on the June 2021 results, however, the impacts are likely to be experienced in the results pertaining to the September quarter. 

It is pointed out that in the March and June 2020 quarters, the volume of building work saw a slump owing to the pandemic-related alert level changes. However, the building work bounced back with improved economic conditions.

With this background, let us take a look at the five NZX-listed infrastructure stocks.

Steel & Tube Holdings Limited (NZX:STU)

Producer and distributor of steel across New Zealand, Steel & Tube Holdings Limited has announced its 2021 Annual Shareholders Meeting.

Due to prevailing uncertainties pertaining to COVID-19, the Company would hold a virtual meeting on 30 September.

On 9 September, at the time of writing, Steel & Tube Holdings gained 1.21% at NZ$1.09.

Related Read: Which are the five popular NZX-listed material stocks?

Fletcher Building Limited (NZX:FBU; ASX:FBU)

Fletcher Building Limited operates major construction and infrastructure projects across the country. The Company will distribute 18.0 cps as a dividend on 17 September, thus taking FY21's total dividend to 30.0 cps.

At the time of writing, Fletcher Building was down by 0.27% at NZ$7.450, on 9 September.

Interesting Read: Do these 5 NZX mid-caps have the potential to become large-cap stocks?

Metro Performance Glass Limited (NZX:MPG)

NZ’s famous glass supplier, Metro Performance Glass Limited, has recently announced the resumption of its operations in the country, following the federal government’s declaration of dropping the alert level from 4 to 3 for regions outside of Auckland and Northland.

However, the Company's Auckland-based plant would remain closed until the city's alert level drops to 3.

On 9 September, Metro Performance Glass traded flat at NZ$0.440, at the time of writing.

Related Read: Metro Performance Glass (NZX:MPG) resumes operations in Alert Level 3 areas

Infratil Limited (NZX:IFT; ASX:IFT)

Investing in businesses related to renewable energy, data, connectivity, airport as well as social infrastructure, Infratil Limited had recently organised its Annual Meeting last month.

Resolutions were passed related to the re-election and election of Directors as well as allowing the Board to fix the auditor’s remuneration.

Shares of Infratil rose by 0.54% at NZ$7.445, on 9 September, at the time of writing.

Related Read: What does Infratil’s (NZX:IFT) investment activity reflect?

SMW Group Limited (NZX:SMW)

Providing solutions related to mining, industry, rail, and defence industries, SMW Group Limited recently revealed its preliminary full-year results ended 30 June 2021. The Group reported NZ$5.5 million as a net loss after income tax owing to unfavourable economic conditions imposed by the pandemic.

As a result, SMW has made significant structural changes to reduce its cost structure.

Looking ahead, the Group has enhanced skill sets of its employees and improved service offerings to its customers, to maintain a strong market position.

At the time of writing, SMW Group remained unchanged at NZ$1.00 on 9 September.

Do Read: How Did The 4 NZX Stocks Perform In Financial Results - GSH, SMW, GEO, TGG?

Bottom Line

Infrastructure stocks lay the foundation for the growth of the modern economy, hence investing in them is rewarding in the long term.



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