MARKET CLOSE: Telecom gains on AAPT sale talk

Monday 12th July 2010

New Zealand stocks rose for their seventh straight day, as the positive momentum from global markets last week and optimism about the earnings season helped lift equity markets in Asia. Telecom shares rose amid reports that the company had set a timetable to sell its Australian unit, AAPT.

The NZX 50 rose 6.8 points, or 0.2%, to 3,012. Within the index 21 stocks rose, 13 fell and 16 remained unchanged. Turnover was $25.7 million.

“Earnings season is always going to be important,” said Stephen Walker, portfolio manager for Devon Funds Management. “What we would like to see in both companies and around the world is revenue growth and so we’re just really focusing on the outlook statements.”

Telecom (NZX: TEL ) rose 1.6% to $1.95 after media reports speculated that the company could offload AAPT in as soon as a month. Walker said price would be a key issue for the market in the long-term but for now the speculation was a small positive driving the shares higher.

NZ Farming Systems (NZX: NZS ) paced gainers, with shares of the South American dairy farm operator rising 10% to 44 cents. Cavalier (NZX: CAV ) rose 2% to $2.50 and fast food chain operator Restaurant Brands (NZX: RBD ) rose 1.7% to $2.37.

OceanaGold (NZX: OGC ) jumped 9.1% to $4.20 after the gold miner confirmed the discovery of significant additional gold reserves in the Panel 2 Deeps area of the Frasers underground mine, in Otago. Infill drilling within the P2 Deeps inferred resource boundary recorded significant grades and thicknesses including 20 metres of 3.73 grams of gold per tonne of overburden, and nine metres at 3.39 g/t Au, the company said in a statement to the exchange.

Guinness Peat Group (NZX: GPG ) rose 1.5% to 68 cents, New Zealand Refining (NZX: NZR ) gained 1.6% to $3.15 and Tower (NZX: TWR ) rose 1.1% to $1.80.

Pacing decliners, Pyne Gould (NZX: PGC ) fell 2.5% to 35 cents, Pike River Coal (NZX: PRC ) fell 2.1% to 92 cents and NZX (NZX: NZX ) fell 1.8% to $1.60.

Kiwi Income Property Trust (NZX: KPT ) fell 1.1% to 92 cents.

Businesswire.co.nz

Comments from our readers

No comments yet