Sharechat Logo

MARKET CLOSE: NZ shares gain; Telecom and Fletcher get off their lows

Wednesday 26th May 2010

Text too small?

New Zealand shares gained as Telecom (NZX: TEL ) lifted from its two-decade lows and after a more bullish assessment of the outlook from Fonterra lifted rural-related companies such as PGG Wrightson (NZX: PGW ).

The NZX 50 Index rose from a 10-month low, gaining 7.36, or 0.2%, to 3011.18, only its second gain in nine sessions. Within the index, 29 stocks rose, 14 fell and seven were unchanged. Turnover of $132.2 million was lifted by trading in Fletcher Building (NZX: FBU ), which rose from a three-month low.

Equity markets rose across much of Asia as beat-up stocks drew investors back into the market and after mining group Rio Tinto Group gave an upbeat assessment of demand from China for the next 15 years. Japan’s Nikkei 225 Index rose 0.7% and Australia’s S&P/ASX 200 Index advanced 1.4%, paced by Rio and other miners. On Wall Street, the Dow Jones Industrial Average ended its session above the psychologically important level of 10,000.

Fletcher, the biggest company on the exchange, gained 1.3% to $7.71. The stock’s relative strength index slipped below a reading of 20 yesterday, a level some technical analysts say is a signal it is poised to rise.

Telecom rose 2.7% to $1.90. The phone company is considering the structural separation of its network business, a sign it is serious about bidding for the lion’s share of the government’s $1.5 billion broadband rollout. Separation would risk a cut to Telecom’s A credit rating, Standard & Poor’s said last week.

NZ Farming Systems Uruguay (NZX: NZS ) surged 7% to 46 cents, leading the NZX 50 higher after Fonterra increased milk payment forecast stoked optimism global prices will rise in the next 12 months.

PGG Wrightson (NZX: PGW ) climbed 3.8% to 55 cents on the prospect of more funds flowing into dairy farms and support industries.

Fisher & Paykel Healthcare (NZX: FPH ) fell 4.4% to $3.25, a two-month low. The manufacturer posted a 15% gain in full-year profit to $71.6 million and forecasting 2011 profit of between $70 million and $75 million. It forecast sales will grow by about 11% this year as it introduces its new range of ICON flow generators, ramps up research and development, bolsters sales and distribution teams and expands manufacturing capacity in New Zealand and Mexico.

F&P Appliances (NZX: FPA ), which is also due to report earnings this week, fell 3.5% to 56 cents.

Kathmandu Holdings (NZX: KMD ) rose 2.7% to $1.92, leading gains in retailers. Hallenstein Glasson (NZX: HLG ) gained 2.4% to $3.40 and Pumpkin Patch (NZX: PPL ) rose 1.5% to $2.05.

Wakefield Health (NZX: WFD ) was unchanged at $7.35 after saying a meeting of shareholders of Norfolk Investments failed to garner enough support for Wakefield’s takeover offer, which would give it a 60% stake in Tauranga’s Grace Hospital. Wakefield said it is now evaluating its options.

  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