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NZX CLOSE: NZ shares gain on Australian growth outlook; HLG rises

Wednesday 14th October 2009

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New Zealand shares rose as consumer confidence in Australia climbed to a two-year high, underpinning sentiment in the nation’s biggest export market. Clothing chain Hallenstein Glasson Holdings led gainers.

The NZX 50 Index rose 17.02, or 0.5%, to 3186.48, having see-sawed between gains and losses for the past eight sessions. Within the index, 20 stocks rose, 17 fell and 13 were unchanged. Turnover was $102.2 million.

Hallenstein, which operates 26 Glasson women’s wear stores in Australia, gained 4.2% to $2.95 and has advanced 32% this year.

The Westpac Banking Corp. and Melbourne Institute sentiment index rose 1.7% to a two-year high 121.4 points this month. The survey comes after figures showed that unemployment fell and the economy stacked on jobs last month.

“There’s still reasonable sentiment” for stocks, said Stephen Wright, private client adviser at ASB Securities.

Equity markets will probably hold their levels are rallying this year though they may struggle to push much higher, he said.“With cash rates practically nothing in the U.S., U.K. and Euro-land, stocks yields look attractive,” he said.

Westpac Banking Corp. rose 2.5% to $32.80 and Australia & New Zealand Banking Group climbed 0.7% to $30.50, tracking the lenders’ shares on the ASX.

New Zealand Oil & Gas gained 2.4% to $1.73 as the price of crude oil edged toward its 2009 high of US$75 a barrel.  U.S. crude for November delivery reached as high as US$74.96 a barrel, helped by a weaker U.S. dollar.

Telecom Corp. gained about 2% to $2.62 after being found guilty in a High Court ruling of using its dominant position to prevent and deter competition in the business-to-business high-speed data transmission market. The breaches took place between 2001 and 2004 and Telecom said structural changes since then mean market conditions relevant at the time also no longer exist.

Fletcher Building, the nation’s biggest construction company, fell 1% to $7.92.  Mark Adamson, CEO of the company’s Formica unit, said sales will rise as the business completes its restructuring. Its laminates face competition from local products in many markets, he said.

Pan Pacific Petroleum fell 8.6% to 53 cents, its second daily decline after the company said it missed out on a stake in a Vietnam prospect. In May the company entered into a farmin agreement with Premier Oil Vietnam South for a 15% interest in an offshore block. The deal was subject to waiver of pre-emption rights by PetroVietnam, which has exercised the rights. 

 

Businesswire.co.nz



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