What’s Happening to the Share Price of Auckland International Airport Ltd?

What does Auckland International Airport Ltd do?

Auckland International Airport Ltd [ASX:AIA] provides the facilities and infrastructure associated with operating an airport. It collects the rent for providing that infrastructure, as well as collecting the associated airline service charges for arriving and departing passengers.

The company posted a strong result for the first half year to December 31. Revenue was up 5.4% to $251.4 million.

That’s interesting, but what is the chart telling us?

What does the chart look like?

I find it helpful to bring up a chart. The monthly chart of AIA.

Auckland Int

Source: STEX

Post GFC recovery, the share price has really taken off and has never had more than two months down. That tells you what you need to know. It suggests the business fundamentals are strong. The share price continues to make new highs. We could expect the full year results to also be positive.

What now for AIA shares?

We could expect further positive news from this company suggesting passenger numbers are up and that its airline customers are developing new routes and additional capacities.

More broadly for the economy, this is not forecasting economic collapse. Quite the opposite in fact, it suggests business and transport is on the move, tourism is up and there’s money to spend.

We can only expect those passenger numbers to increase, especially from China’s growing middle class who now have the money and means.

Use the charts to forecast future announcements and tell you the truth about the economy. You can get started here.
Terence Duffy,
Research Analyst, Cycles, Trends and Forecasts

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Terence Duffy is an analyst and chartist, specialising in researching economic trends and cycles.  His primary focus is housing and land affordability. But you can also depend on him to offer his unique analysis of stock market charts. As Terence will show you, the charts often forecast, well in advance, the good or bad news to come — which he details in Cycles, Trends and Forecasts.

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