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MARKET CLOSE: Ebos and Sky TV have a good day

Thursday 5th August 2010

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New Zealand shares rose, lifting the NZX 50 Index for the sixth time in seven sessions, after Ebos announced the sale of its science units, allowing it to repay debt, and as Sky TV reached a three-month high.

The NZX 50 gained 6.53, or 0.2%, to 3044.66. Within the index, 19 stocks rose, 19 fell and 12 were unchanged. Turnover was $55.4 million.

Ebos (NZX: EBO ), the medical supplies distributor, rose 4.2% to a record close of $6.70, bringing its gain in the past 12 months to 20%. The company announced today it will sell its trans-Tasman science businesses to American firm VWR International, allowing it to erase all of its debt. 

“The transaction will be value-positive for Ebos shareholders both in terms of a gain on sale from the transaction and the resultant cash flow,” it said.

Sky TV (NZX: SKT ) rose 3.3% to $5.05. The nation’s biggest pay-TV company is expected to post a 10.5% gain in reported earnings, according to Forsyth Barr, which rates the shares a buy. Its outlook is positive given the defense nature of its earnings.

Rakon (NZX: RAK ) gained 3.8% to $1.10 as the kiwi dollar tumbled following a weaker-than-expected employment report for the second quarter. The jobless rate jumped to 6.8%. A weaker dollar helps boost the value of overseas revenue when it is brought home. Nuplex (NZX: NPX ) rose 1.3% to $3.04.

The kiwi dollar traded recently at 72.95 US cents from about 73.50 cents immediately before the jobs data was released.

Vector (NZX: VCT ) climbed 1.9% to $2.10.

Kathmandu (NZX: KMD ) fell 3.3% to $1.76, adding to yesterday’s 12% slump after it said gross margins fell short of last year’s forecast at 63%, which is below both the 64.4% result in the previous year and 64% prospectus figure.

Among other retailers, Michael Hill (NZX: MHI ) declined 2.9% to 66 cents and Pumpkin Patch (NZX: PPL ) dropped 3.4% to $1.71.

NZ Farming Systems Uruguay (NZX: NZS ), which is awaiting a firm takeover offer from Olam International, fell 3.5% to 55 cents. Fonterra said yesterday it may have to reduce its forecast payment to farmers because of weakening in global dairy prices and the strength of the New Zealand dollar. Olam has said it will offer 55 cents a share for the rest of Farming Systems.

Telecom (NZX: TEL ) rose 0.5% to $2.02 after Standard & Poor’s put the company on CreditWatch Negative, giving it a one-in-two chance of a downgrade over the next three months. The company has proposed separating its lines and retail businesses to participate in the government’s high-speed broadband rollout.

Guinness Peat Group (NZX: GPG ) fell about 3% to 65 cents.

 

Businesswire.co.nz



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