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MARKET CLOSE: NZ shares rise; Vector gains on Transpower deal, SKT advances

Tuesday 15th June 2010

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New Zealand shares rose, pushing the NZX 50 Index up for a fifth straight day, after Vector Ltd. said it would get a one-time gain from a deal with the nation grid company and Sky TV rose amid World Cup fever.

The NZX 50 gained 1.23 points, or 0.04%, at 3043.90. Within the index, 21 stocks rose, 18 fell and 11 were unchanged. Turnover was $50.7 million.

Vector, (NZX: VCT ) New Zealand’s biggest gas and electricity lines company, rose 1.4% to $2.14 after the company said it would book a one-time profit of $21 million from changes to tax rules and a gain of $52 million in a deal to give Transpower access to its facilities.

“These are nice one offs for Vector, which have moved the share price a little bit higher,” said Grant Williamson, a director at Hamilton Hindin Greene. ”Interest has been growing in this stock in the last few months, and is expected to continue as we get closer to the government’s fibre initiative up in Auckland,” he said. “The stock has a good yield so investors chasing.”

Williamson said some investors are returning to the market after the benchmark index tumbled more than 8% in two months, making prices relatively more attractive.

“Locally what we are seeing is some bargain hunting but nothing aggressive, with investors still reasonably uncertain,” he said.

Sky TV (NZX: SKY ) climbed 3.5% to $4.80. The nation’s largest pay-TV company typically gets an influx of subscribers when it has major sporting events on offer, such as the Football World Cup in South Africa.

New Zealand Oil & Gas (NZX: NZO ) fell 1.5% to $1.34, adding to yesterday’s 4.9% slide after announcing that its 12.5%-owned Tui SW-2 oil well would not be commercially viable. Pan Pacific Petroleum, with 10%, dropped 4% to 24 cents.

Burger Fuel (NZX: BGW ) the hamburger chain that has expanded to the Middle East, surged 33% to 40 cents, though only 5,000 shares changed hands.

The company yesterday posted a narrower full-year loss of $552,983, from $710,282 a year earlier and said the latest shortfall reflected start-up costs of its operations in the Middle East and further investment in the Australasian market. Sales are rising in Australia and New Zealand, it said.

APN News & Media (NZX: APN ) the publisher of the New Zealand Herald, gained 2.6% to $2.72. 

Clothing chain Hallenstein Glasson (NZX: HLG ) gained 2.6% to $3.59 and carpet maker Cavalier (NZX: CAV ) was up 2.4% to $2.56.

Businesswire.co.nz



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