MARKET CLOSE: NZX 50 falls; Wrightson drops on Australia closure

Monday 19th January 2009

New Zealand shares fell, paced by PGG Wrightson, after the rural services company announced said it would close its Australian real estate and livestock businesses because of the downturn.

The NZX 50 Index fell 4.185, or 0.2%, to 2747.975. The benchmark has declined about 1% this year. Within the index, 21 stocks rose, 20 fell and nine were unchanged. Turnover was NZ$67.2 million, according to Reuters data.

Wrightson tumbled 10% to NZ$1.28 after the company said it will close units in Australia because of tough market conditions and a subdued outlook. The four offices employ 39 people in the states of New South Wales and Victoria.

Infratil, the group that owns a controlling stake in TrustPower and investments including Wellington Airport, fell 1.2% to NZ$1.63. The company today said founder and managing director Lloyd Morrison will take medical leave from his job after being diagnosed with the form of leukaemia. Chief operating officer Marko Bogoievski will be acting CEO.

Tower rose 3.8% to NZ$1.77, leading gainers on the NZX 50, after the insurer and funds manager named Eric O’Sullivan as chief financial officer, a position he has held on a temporary basis since October. O’Sullivan will continue as company secretary.

Children’s clothing chain Pumpkin Patch rose 1% to 97 cents after Jan Cameron, the cashed-up former owner of the Kathmandu stores, increased her stake in the retailer to 9.1% from 6.3% via on-market purchases, according to a filing to the NZX. Pumpkin Patch was one of the biggest decliners on the NZX 50 in the past 12 months, falling 56%.

Warehouse Group, the biggest retailer on the NZX 50, rose 2.8% to NZ$3.70 and Skellerup dropped 5.3% to 71 cents.

In Sydney, the S&P/ASX 200 Index rose 1% to 3587.6. Rio Tinto rose about 6% to A$40.63, BHP Billiton climbed 1.3% to A$30.28, Newcrest Mining gained 8.8% to A$31.49 and Lihir Gold jumped 6.7% to A$2.86 after prices of metals gained.

Copper futures for March delivery rose 5.1% to US$1.5275 a pound on the New York Mercantile Exchange on Friday. The price of the metal has declined 64% since reaching a record US$4.2605 a pound in May. Gold futures for February delivery rose 4% to US$839.90 an ounce in New York.

The Nikkei 225 Index rose 0.4% to 8262.21 in early afternoon trading. Insurers rose, led by a 3.6% gain for Aioi Insurance Co. after the Nikkei newspaper said it will merge with two rivals to cut costs. Mitsui Sumitomo Insurance Group Holdings gained 1.6%.

(Businesswire.co.nz)

NZX Top 50
Last updated: 19/01/2009 5:07pm

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