Sharechat Logo

MARKET CLOSE: NZ share rise on offshore sentiment

Monday 13th September 2010

Text too small?

New Zealand stock rose for a second session, as investor appetite for risk was bolstered on higher-than-expected wholesale inventories in the US and a faster improvement in China’s industrial output.

Goodman Property Trust, Fisher & Paykel Appliances, and Guinness Peat Group paced gainers on the day.

The NZX 50 rose 17.5 points, or 0.6%, to 3,178.4. Within the index 26 stocks rose, 11 fell and 13 were unchanged. Turnover on the day was $86.4 million.

Inventories at US wholesalers rose in 1.3% in July by the most in two years, an unexpected surge that suggested confidence in the economic recovery, while in China industrial production gained 14% in August from a year earlier, beating median estimates by 1%.

“It looks like a pretty typical Monday, and we’ve firmed up on the positive tone from offshore,” Hamilton Hindin Greene director Grant Williamson says.

“The overseas markets continue to improve - we just need economic releases to support that and we could be for a pretty good week. The US market had been negative for some time and the hope out there is it shows some sort of bottom.”

Goodman Property (NZX: GPT ) rose 2.1% to 98 cents, Fisher & Paykel Appliances (NZX: FPA ) rose 1.9% to 54 cents, and Guinness Peat Group (NZX: GPG ) rose 1.6% to 64 cents.

Telecom (NZX: TEL ) rose 1.5% to 2.07, and Vector (NZX: VCT ) rose 1% to $2.11.

Williamson said the selloff in the stocks last week “was a bit knee jerk” after Crown Fibre Holdings announced that it would opt for a region-player plan rather than a single player strategy.

“I expect both of these players to play a significant part in further rollouts,” Williamson said.

Fletcher Building (NZX: FBU ) rose 1.3% to $8.36, and Steel & Tube Holdings (NZX: STU ), which produces materials for the construction industry, rose 1.2% to $2.53.

Both companies are expected to benefit from the reconstruction efforts in the wake of the Canterbury earthquake, with the repair bill expected to be in the region of $4 billion.

Separately, the Treasury today quashed speculation that the earthquake would be an economic positive for the region as fund flow in from reinsurers offshore, and said any benefits derived the 7.1 magnitude earthquake would be negated by the destruction of wealth caused.

The Warehouse (NZX: WHS ) rose 1.4% to $3.75, its second daily gain after raising its dividend payment ratio and announcing a special payment of 5 cents a share, "in a sign of the board’s confidence in the company’s ability to continue generating solid operating cash flows."

OceanaGold (NZX: OCG ) rose 3.2% to $4.80 after the company announced it is set for a $30 million windfall at the current gold price after it bought back its hedge book, according to media reports.

The company paid US$72 million for the book at the end of March, and was making the $30m bottom-line prediction based on the fact that it now made extra upside on gold prices above NZ$1565 an ounce.

ANZ National Bank (NZX: ANZ ) rose 1.2% to $30.50 on the NZX after it named David Hisco as its chief executive, replacing Jenny Fagg, who stood down to concentrate on battling cancer.

SkyCity (NZX: SKC ) rose 0.4% to $2.86 after data from Statistics New Zealand showed hotels recorded a 4% increase in overnight stays in July, boosted by more international visitors.

International guest nights in July rose 2% compared to the same month in 2009, and rose 4% when compared to the year before that.

Rakon ((NZX: RAK ) fell 4.2% to $1.14, pacing decliners on the main board. Pyne Gould (NZX: PGC ) fell 2.4% to 41 cents, and Tower (NZX: TWR ) fell 1.6% to $1.84.

NZ Farming Systems (NZX: NZS ) fell 1.4% to 69 cents after Olam International, which is bidding for a majority stake in the company, announced that it had increased its shareholding to 41%.

Ecoya, the scented candle company which recently acquired cosmetics company Trilogy in a deal worth $20 million, had its stock halted from trading ahead of a bookbuild for a share placement. They last traded at 80 cents.

The placement comes after Ecoya paid $10 million in cash for Trilogy, with a further earn out payment of up to $10m to follow, half in cash and half in $1 shares of Ecoya dependent on the cosmetics company reaching earnings targets next year.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

MARKET CLOSE: Mainfreight shares rise in weak market
MARKET CLOSE: Telecom powers ahead
MARKET CLOSE: NZX stars on the market
MARKET CLOSE: NZX lifts nearly 10pts, despite post-Budget slip
MARKET CLOSE: NZX lifts again in quiet day
MARKET CLOSE: NZX closes up but off best levels
MARKET CLOSE: Sharemarket bounces unconvincingly
MARKET CLOSE: NZX finishes down again
MARKET CLOSE: Tower shares slip as quake impact hits home
Market Close: Shares ease ahead of OCR call