NZX CLOSE: NZ shares gain in thin trading as Asian equities mixed

Thursday 7th January 2010

Jan. 7 (BusinessWire) – New Zealand shares rose in thin trading today amid mixed equity markets across the Asia-Pacific region.

The NZX 50 Index rose 13.24, or 0.4%, to 3284.81. Within the index, 22 stocks gained, 13 were unchanged, two didn’t trade and 13 declined. Japan’s Nikkei 225 index shed 0.2% to 10708.30, Hong Kong’s Hang Seng index edged up 0.02% to 22420.24 and Australia’s SP/ASX 200 slipped 0.4% to 4902.80.

“In the Asian region, stock markets are mixed this Thursday as improving economic fundamentals globally continue to support rising commodity prices,” said Ben Potter, research analyst at IG Markets in Melbourne.

In Australia, “underlying strength in commodity prices is driving significant gains among energy and materials sectors while weakness among financials and telecommunications stocks is holding the market back.”

Turnover on the NZX 50 was $65.2 million as trading remained thin with investors still on holiday, though “there’ll be a bit more back next week, and a bit more the week after that” when the trading desks get up and running at full speed, according to Stephen Walker, head of asset management at Goldman Sachs JBWere.

Guinness Peat Group (NZX: GPG ) continued its move higher today, gaining 2.3% to 91 cents, taking this week’s gain to 6%. The investment company chaired by Ron Brierley is expected to announce its full-year results with its year-end at Dec. 31.

Insurer Tower Ltd (NZX: TWR ), of which GPG is a shareholder, rose 1.5% to $2.10.

NZ Farming Systems Ltd (NZX: NZS ), which develops dairy farms in South America based on New Zealand farming techniques, climbed 2% to 50 cents, while shareholder PGG Wrightson Ltd. was unchanged at 61 cents on reasonable volume after it sold half its stake in Canterbury Saleyards Co.

Walker said the sale was probably one it had already “ear-marked to tidy up its balance sheet” as part of its capital raising that brought on board Chinese agriculture and seed research company Agria as a cornerstone investor.

Casino operator Sky City Entertainment Group (NZ:SKY) rose 1.5% to $3.45 after it finalised the sale of its cinema businesses to Amalgamated Holdings at a price that was “a little bit better than expected.”

Mainfreight Ltd, (NZX: MFT ) the biggest trucking firm on the 50, gained 2% to $5.68 while infrastructure investment company Infratil Ltd (NZX: IFT ) rose 1.9% to $1.65.

Rubber manufacturer Skellerup Holdings (NZX: SKL ) wiped yesterday’s gains, and dropped 3.9% to 50 cents in the biggest fall on the NZX 50 today.

Bourse operator NZX Ltd (NZX: NZX ) fell 3.4% to $2.28 and Pan Pacific Petroleum (NZX: PPP ) had another down day, falling 2% to 50 cents after it announced further delays to its cementing and sidetracking operations in its Lolotoe-1 well.

Phone companies Telecom Corp. and Telstra Corp. shed 1.6% to $2.53 and 1.7% to $4.18 respectively.

Businesswire.co.nz

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