CLOSE: Stocks edge higher in light trading; Sky City gains

Friday 7th August 2009

Stocks edged higher as investors prepare for earnings season to begin in earnest. Sky City Casino Group, which has already flagged that profit beat its forecast, more than doubling from a year earlier, led the advance.

The NZX 50 Index rose 12.84, or 0.4%, to 3068.99, snapping a two-day slide. Within the index, 17 stocks rose, 20 fell and nine were unchanged. Turnover was $69.5 million.

Sky City Entertainment (NZX: SKC ) rose about 4% to $3.39 and has soared 29% since the start of July. Net income was as much as $116 million in the year through June 30, up from $49.9 million a year earlier, which included a $60 million charge against its cinema unit. The company posts earnings on August 19.

Restaurant Brands New Zealand (NZX: RBD ), the franchise holder for Pizza Hut, KFC and Starbucks, rose 3% to $1.03. ING Property Trust (NZX: ING ) climbed 2.8% to 74 cents.

Air New Zealand (NZX:AIR) rose 2.6% to $1.18, a level it last reached on Sept. 3. The national carrier announced today it will offer trans-Tasman flights twice a week in the lead-up to the Christmas holidays, aiming to reap the benefits of a joint marketing campaign with the government to attract more Australians.

“We see the potential for good passenger numbers from Australia and the continued strength of inbound tourism from there has lent weight to our decision,” Tasman Pacific Airline general manager Glen Sowry said.

NZX (NZX: NZX ), the stock exchange manager, fell 1.3% to $7.61, having initially gained after reporting first-half profit jumped to $60.8 million, reflecting gains on asset sales. A profit of $61.6 million was forecast by Forsyth Barr.

Fletcher Building (NZX: FBU ) slipped 0.4% to $7.32. A survey by the Australian Industry Group and Housing Industry Association, released today, showed the building industry across the Tasman contracted at a faster pace last month on dwindling demand for major commercial projects and apartments.

The association’s index fell 3.1 points to 39.5 on a scale where anything below 50 signals a contraction.

Steel & Tube Holdings (NZX: STU ), which sells steel building products in the New Zealand market, fell 1.8% to $3.20.

Abano Healthcare (NZX: ABA ) slipped 1.7% to $5.70 as ABN Amro Craigs analyst Michelle Perkins downgraded the shares to ‘hold’ from ‘buy,’ citing their recent strong appreciation. The shares had surged 21% in the past month, reaching a nine-year high this week, before dipping the past two days.

Businesswire.co.nz

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