Sharechat Logo

MARKET CLOSE NZ shares rise led by Hallenstein, Fletcher; Chorus slides after downgrade

Tuesday 21st January 2014 1 Comment

Text too small?

New Zealand shares rose to a two-month high, led by retailer Hallenstein Glasson, extending its rally from a four-year low as investors went bargain hunting.

The NZX 50 Index advanced 31.175 points, or about 0.6 percent, to 4921.671, the highest close since Nov. 14. Within the index, 31 stocks rose, 12 fell and seven were unchanged. Turnover was $75 million.

Hallenstein, whose shares tumbled more than a quarter last week after it issued a profit warning, led gainers on the NZX 50 rising 7.1 percent to $3.48 as investors were attracted by its relative cheapness.

"Its bottom fishing, you always get a lot of volatility after a profit warning," said James Lee, head of institutional equities at First NZ Capital.

New Zealand's biggest listed company Fletcher Building helped pace gains, rising 1.5 percent to $9.06, after it announced former Commonwealth Bank of Australia Ralph Norris will join its board in April.

First NZ's Lee said the company's strong interests across the Tasman and a rising kiwi against the Australian dollar meant Fletcher was now more an Australian story than a New Zealand one.

Air New Zealand, the national carrier, increased 0.9 percent to $1.70, buoyed by the recent announcement of a potential code-sharing alliance with Singapore Airlines. Government data today showed a surprise lift in the consumers price index, driven by rising prices for international and domestic flights.

"Air New Zealand continues its upward trend on that Singapore alliance announcement, should it come through the regulators," Lee said.

Chorus, whose share price halved last year, dropped 4.9 percent to $1.465 after Moody's Investors Service downgraded its credit rating due to the on-going regulatory uncertainty surrounding the pricing of its copper line service.

Fisher and Paykel Healthcare, who makes breathing masks and respirators, continued an upward trend, hitting a near seven-year intraday high of $4. It rose 1.3 percent to close at $3.97. Wellington-based cloud accounting software maker Xero also rose to another record close, gaining 1.1 percent to $42.38.

Auckland International Airport gained 2.5 percent to $3.67. Online auction site Trade Me was up 2.2 percent to $4.20, as was New Zealand's biggest listed retailer the Warehouse, rising 0.3 percent to $3.76. Telecom was unchanged at $2.385.

 

BusinessDesk.co.nz

Bond Offer: Infratil Ltd, 7.2 year & 10.2 year unsecured unsubordinated bond


  General Finance Advertising    

Comments from our readers

On 21 January 2014 at 6:30 pm Peter said:
I am really enjoying your daily commentary, keep it up.
Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
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:

Briscoe Group says outlook uncertain
FMA, RBNZ disappointed by life insurers' response; $1.4m of issues found
Steep rate cut may have spooked households - Westpac
Veteran media exec Joan Withers joins Sky TV board
Contact hires Refining NZ CEO to replace Barnes
17th September 2019 Morning Report
NZ dollar weaker after Trump authorises use of emergency crude stockpile
Govt minerals strategy poses 'significant' risk to security of supply - Enerlytica
Z, BP, Mobil dragging chain on secure Auckland jetfuel supply - review
MARKET CLOSE: NZ shares fall; high oil prices weigh on Air NZ, Mainfreight

IRG See IRG research reports