NZX CLOSE: NZ shares edge up, led by ANZ and financial stocks

Thursday 14th January 2010

New Zealand shares edged up in trading today, led by Australian New Zealand Banking Group and other financial stocks, amid an unexpected fall in Australia’s unemployment rate.

The NZX 50 Index rose 3.57, or 0.1%, to 3279.76. Within in the index 17 stocks gained, 16 were unchanged and four didn’t trade, while 13 declined. Turnover was $37.4 million.

The ANZ and Westpac Banking Corp. surged 4.6% to $28.39 and 3.1% to $31.95 respectively as the unemployment rate in Australia dropped to 5.5% from a revised 5.6% in December from a month earlier, boosting prospects for economic growth across the Tasman.

One analyst said the gain “literally staggered the market.”

“The ASX 200 is 0.9% higher at 4910.6 after hitting a high this morning of 4920.5 after the stronger-than-expected employment numbers were released,” said Ben Potter, research analyst at IG Markets in Melbourne. “Gains are pretty broad based but, once again it’s the materials and financials putting the most points into the index.”

Financial services provider AMP Ltd. also gained 2.3% to $8.05, while insurer Tower Ltd. rose 1.4% to hold near a 16-month high at $2.18.

Property investors gained after data showed residential construction continued to improve in November, though commercial consents have remained flat in the past 18 months.

AMP New Zealand Office trust climbed 1.3% to 78 cents while Kiwi Income Property Trust increased 1.9% to $1.05.

Rural services provider PGG Wrightson Ltd. gained 3.1% to 66 cents, though NZ Farming Systems Uruguay Ltd, of which Wrightson’s is a shareholder, declined 2.1% to 46 cents.

Infrastructure stocks had a rough day, with Infratil Ltd. dropping 1.2% to $1.68, Auckland International Airport Ltd. down 1% to $1.93 and Telecom Corp. falling 0.8% to $2.50.

Rest home operator Ryman Healthcare declined 1.7% to $1.68, while industrial property landlord Property for Industry Ltd. shed 1.7% to $1.19.

Shares in audio retailer and importer Eastern Hi Fi Group were suspended at 8 cents after it announced it had called in the receivers after its lease commitments weighed on its ability to operate.

Failed EFTPOS provider ProvencoCadmus Ltd. announced it will be delisted from close of trading tomorrow. Provenco’s assets were picked up by SmartPay Ltd. last year when the company went into receivership.

Businesswire.co.nz

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