NZX CLOSE: NZ shares gain with Australia; Michael Hill, ANZ Bank rise

Thursday 8th October 2009

New Zealand shares rose after figures showed Australia’s unemployment rate unexpectedly fell, stoking optimism about economic growth across the Tasman and lifting shares of Australia & New Zealand Banking Group and AMP Ltd.

The NZX 50 Index rose 27.75, or 0.9%, to 3168.94. Within the index, 22 stocks rose, 17 fell and 11 were unchanged. Turnover was $135 million, marking it as one of the busiest days this year.

Michael Hill International, the jeweler that counts Australia as its biggest market, gained 5.9% to 72 cents, leading the index higher.

ANZ Bank climbed 5.3% to $30, tracking its shares on the S&P/ASX 200. The lender said the contingent liability for tax in New Zealand amounts to less than 10 basis points of its Tier 1 capital ratio. Westpac Banking Corp., which today lost a New Zealand case involving tax and interest owing of $961 million, gained 3.6% to $31.80.

“All banks stocks in Australia have performed very strongly,” said Rickey Ward, who helps manage $400 million at Tyndall Investment Management.He said investors are eyeing the third quarter earnings season in the U.S., “waiting to see good news to cement recent good returns.”

Alcoa Inc., the first company on the Standard & Poor’s 500 to post its results, unexpectedly reported a profit of US$77 million, after three quarters of losses, on higher prices for aluminium and cost cutting.

Insurer AMP Ltd gained 5.2% to $7.89. Australia’s jobless rate fell to 5.7% last month, from 5.8%. Economists had expected the rate to rise top 6%. The economy added 40,600 from August, the biggest gain in almost two years, against expectations it would shed 10,000. The S&P/ASX 200 Index rose 1.4% to 4763.60 today.

Tower Ltd fell 1.2% to $1.66 after the insurance group said its exposure to claims relating to the Samoan earthquake and tsunami will be capped at $5 million under reinsurance arrangements, and will produce a post-tax impact of around $3.5 million.

Fisher & Paykel Healthcare dropped 3.2% to $3.06 as the kiwi dollar climbed above 74 U.S. cents to a 14-month high, following the Australian dollar higher after the jobless data.

F&P Healthcare gets almost 80% of its revenue in U.S. dollars.Tyndall’s Ward said the maker of respirators and breathing masks has been hurt by reports of the potential impact of health-care reforms in the U.S. The changes may include a proposed excise tax on medical devices to be paid by manufacturers.

Pike River Coal, the coal mine developer which aims to make its first deliveries in the New Year, gained 3.5% to $1.17 and has surged 15 cents this month. Goldman Sachs JBWere has increased its forecasts for iron ore and coking coal, reflecting increased demand from China.

Hard coking coal may climb to US$180 a ton, from an earlier forecast of US$155 a ton, the brokerage said. Pike produces premium coking coal.

Businesswire.co.nz

Comments from our readers

No comments yet