NZX CLOSE: NZ shares snap 2-day slide; RBD, Contact gain

Friday 23rd October 2009

New Zealand shares snapped a two-day slide, led by fast-food chain Restaurant Brands, as global sentiment for equity markets improved.

Stocks rallied across Asia on optimism economic recovery will pick up pace.The NZX 50 index rose 13.23, or 0.4%, to 3214.93. In the week, the benchmark index edged up 0.2%. Within the index, 23 stocks rose, 12 fell and 15 were unchanged. Turnover was $103.9 million.

Restaurant Brands rose 4% to $1.55 and has surged 62% in the past six months. The company has lifted sales and earnings, reviving revenue growth at Pizza Hut, having written down the pizza chain a year ago.

Westpac Banking Corp. rose 2.5% to $33.50, tracking gains in lenders on the ASX after stronger earnings growth from companies on Wall Street including fastfood chain McDonald’s Corp.

New Zealand Refining rose 1.9% to $5.50 as crude oil headed for its fourth week of gains. Crude has climbed to almost US$82 a barrel this week and was at US$81.65 a barrel in Singapore, based on the nearest contract.

Hallenstein Glasson rose 1.6% to $3.10 and Michael Hill International climbed 1.5% to 68 cents after Wesfarmers, Australia’s second-biggest retailer, posted a 6.1% gain in same-store sales for the three months ended Sept. 27, sending its share soaring 7.3%.

Fletcher Building rose 1.2% to $8.42. The company held analyst briefings and a site visit last week, prompting some analysts to upgrade the ratings on the company and lift their forecasts.

PGG Wrightson Ltd., the nation’s biggest rural services company, fell 2.9% to 68 cents and NZ Dairy Farms Uruguay dropped 2.2% to 44 cents after meat processor Silver Fern Farms reported annual profits tumbled excluding a payment from PGG Wrightson to settle their failed merger.

Businesswire.co.nz

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