Market Close: NZ stocks rise a third day; Rakon gains 11%

Thursday 27th November 2008

New Zealand stocks rose, bringing the NZX 50 Index’s three-day rally to 3.6% as investors with a longer time horizon sought companies likely to maintain their dividends.

The NZX 50 gained 30.843, or 1.2%, to 2668.744. Within the index, 33 stocks gained, seven fell and 10 were unchanged. The benchmark index has fallen 35% this year. Rakon climbed 13 cents to NZ$1.32, having slumped 40% in a month.

“Some people are happy to look over the horizon, six to nine months out,” said Alan Moore, who helps oversee NZ$250 million at Milford Asset Management Ltd. “The market does look that far in advance and some people will be starting to nibble away.”

Sky City Entertainment “would be a yield play,” Moore said. The casino operator’s stock gained 5% to NZ$3.15 today. On an historical dividend basis, the stock is yielding 10%. Rakon is one of the stocks “which had a huge fall.”

AFFCO Holdings, the meat company that has outperformed the NZX 50 Index this year, was unchanged at 40 cents today and has gained 20% this year, while the NZX 50 fell 32%. It turned to a full-year profit after a pick up in sales in the second half and a one-time gain from Dairy Trust.

Mainfreight advanced 6.6% to NZ$4.55, making it the biggest gainer after Rakon. Rival freight company Freightways Ltd. fell 3.8% to NZ$2.75.

(Businesswire.co.nz)

NZX Top 50
Last updated: 27/11/2008 5:08pm

AIA	1.70	+0.01
AIR	0.86	+0.01
AMP	6.30	+0.02
ANZ	16.70	-0.08
APN	3.19	0.00
APT	0.96	0.00
CAV	2.15	+0.05
CEN	6.80	+0.06
EBO	4.15	+0.05
FBU	5.70	+0.13
FPA	1.37	+0.05
FPH	3.00	-0.04
FRE	2.75	+0.10
GFF	1.56	-0.03
GMT	1.02	+0.01
GPG	0.90	+0.01
HLG	2.28	+0.03
IFT	1.63	+0.01
IMP	1.02	0.00
ING	0.63	+0.01
KIP	1.07	+0.02
LNN	10.40	0.00
MFT	4.55	+0.28
MHI	0.60	0.00
MVN	1.35	0.00
NPX	3.45	+0.05
NZO	1.31	+0.01
NZR	6.35	-0.05
NZS	0.87	-0.03
NZX	5.70	+0.05
PFI	1.00	+0.02
PGW	1.65	+0.04
POT	5.85	+0.07
PPL	1.10	0.00
PRC	1.01	+0.02
RAK	1.32	+0.13
RYM	1.39	+0.04
SAN	5.40	+0.05
SKC	3.15	+0.15
SKL	0.75	0.00
SKT	3.32	+0.07
STU	2.75	+0.02
TEL	2.38	+0.02
THL	0.70	0.00
TLS	4.90	0.00
TPW	6.88	-0.04
TWR	1.53	+0.08
VCT	2.00	+0.06
WBC	19.40	-0.85
WHS	3.52	+0.02

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