NZX CLOSE: NZ shares gain, led by Michael Hill on better trading result

Friday 8th January 2010

New Zealand shares rose, led by jewellery chain Michael Hill International Ltd. which reported an increase in Christmas trading on a “same store” basis.

The NZX 50 Index rose 25.4, or 0.8%, to 3310.2. Within the index, 23 stocks rose, 15 were unchanged, one didn’t trade and 11 declined. Turnover was $40.5 million, ending a low-key week back from the Christmas and New Year holiday period.

“Australia and New Zealand are in isolation. Christmas and New Year’s are gone in the Northern Hemisphere, and they’re just looking for figures to come out and give them some sort of guidance,” said Alan Moore, who helps manage $350 million at Milford Asset Management.

Michael Hill surged almost 11% to 73 cents after the jewellery store chain reported a 4.4% increase in “same store” operations across its Australasian, US and Canadian stores.

The company has recovered somewhat from its slump to around 60 cents in November, and Moore said it was a “pleasant surprise” to see some improvement in its North American business.

Construction company Fletcher Building Ltd. gained 2.6% to $8.32, steel products supplier Steel & Tube Holdings rose 1.1% to $2.90 and specialty chemical maker Nuplex Industries Ltd. rose 4% to $3.13 amid a pick-up in sentiment amongst global manufacturers.

Restaurant Brands Ltd., which operates the New Zealand franchises for KFC, Pizza Hut and Starbucks, gained 3% to $1.74, while phone company Telecom Corp. gained 2.4% to $2.59.

Campervan operator Tourism Holdings Ltd. surged 9.4% to 93 cents. International investor Widespread Portfolios Ltd. was unchanged at 15.5 cents after it announced Asian Mineral Resources, which is developing a nickel mine in Ban Phuc, Vietnam, had successfully closed a $5.9 million private placement.

The placement dilutes Widespread’s shareholding to 4.3% from 6.5%, and represents 50.6% of Widespread’s total assets. Financial services company AMP Ltd. shed 3% to $8.01, carrying on from yesterday’s slump in Australian financial stocks.

Retailer Kathmandu Holdings remained subdued, falling 2.1% to $1.90, while Sky Network Television Ltd. declined 1.9% to $5.18.

Cynotech Holdings, the finance company run by Allan Hawkins, sank 7.1% to 7.9 cents, and has shed 4.5% this week. Hawkins, who was jailed for fraud in the 1990s for his role in so-called ‘H-fee’ Equiticorp scheme, has put his takeover bid for the company on hold after the Takeovers Panel advised some amendments needed to be made to the prospectus.

The amended offer is expected to be sent early this month.

Businesswire.co.nz

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