Friday 11th June 2010 |
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New Zealand shares rose, pushing the NZX 50 to almost a two-week high, after Port of Tauranga confirmed evidence of robust export activity by raising its full-year guidance.
The NZX 50 gained 38.93, or 1.3%, to 3041.26, the third daily gain to the highest since June 1. Within the index, 37 stocks rose, six fell and seven were unchanged. Turnover was $63.9 million.
Shares rallied across the Asia Pacific region, completing a global uplift that was partly driven by proof of China’s continued robust economic growth. Japan’s Nikkei 225 Index gained 1.7% and Australia’s S&P/ASX 200 Index advanced 1.3%.
Cavalier (NZX: CAV ) rose 6.8% to $2.50.
Port of Tauranga (NZX: POT ), the nation’s biggest export port, climbed 3.8% to $6.80. The company today raised its full-year earnings guidance by as much as 11%, citing a “strong” increase in volumes. Normalised net profit in the year ending June 30 will be $49 million to $50 million, chief executive Mark Cairns said. That exceeds consensus of $47 million.
The upgrade is “as a result of the strong increase in volumes, particularly over the last quarter,” Cairns said.
“Exports of commodities have been pretty strong,” said Stephen Walker, portfolio manager at Devon Funds Management. “Logs are going into China in huge volumes.” Walker says the domestic economy’s spring back from recession hasn’t been as dramatic as hoped.
NZX (NZX: NZX ) sank 5.1% to $1.50, the biggest decline on the NZX 50 today. The company “does not get the market’s confidence in the same way it has 2-3 years back,” with questions about its overall strategy, Walker said.
Affco (NZX: AFF ) was untraded at 37 cents pending a full takeover by Talley’s Group at that price. The closely held food, fishing and dairy investor tightened its grip on the meat company after gaining conditional agreement to buy out a fellow shareholder, Toocooya Holdings, a diversified private investment group whose owners include New Zealand's Spencer family.
Goodman Fielder (NZX: GFF ), Australia’s biggest breadmaker, gained 4.3% to $1.70.
Allied Farmers (NZX: ALF ) rose 6.4% to 5 cents following its announcement that it has a conditional buyer for the second stage of the Five Mile development near Queenstown, that’s north of the $23.2 million valuation as at December 31.
Jeweller Michael Hill (NZX: MHI ) rose 6.1% to 70 cents.
New Zealand Oil & Gas (NZX: NZO ) climbed 1.4% to $1.43, its second daily gain after announcing it encountered hydrocarbons in a test well within the Tui licence. It owns 12.5% of Tui.
Businesswire.co.nz
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