13 Jun 2012

SkyCity Entertainment shares fall nearly 3.5%

7:46 pm on 13 June 2012

SkyCity Entertainment Group shares have fallen nearly 3.5% after the Auditor General's office started an investigation into the Government's controversial deal with the casino operator to build a convention centre in Auckland.

SkyCity welcomes the inquiry, and says it will fully co-operate in what it perceives has been a competitive selection process.

Craigs Investment Partner investment adviser Jennifer Morton says even though the centre wasn't a done deal, the market probably concluded it would go ahead, so Wednesday's share price fall isn't surprising.

"The market will look at what is potentially a negative announcement and that will have an immediate affect on the share price ... the question becomes whether that is a lasting effect or whether it's just a short term impact".