MARKET CLOSE: NZ shares gain as investors seek growth stocks

Friday 19th June 2015

New Zealand shares rose, tracking broad gains on Wall Street, as investors sought growth stocks such as Orion Health Group, Ryman Healthcare and Summerset Group.

The NZX 50 Index advanced 32.056 points, or 0.6 percent, to 5781.761. Within the index, 26 stocks rose,19 fell and five were unchanged. Turnover was $277 million, including $40 million of Meridian Energy and $31 million of Trade Me.

"We've followed the international markets higher today," said Grant Williamson, a director at Hamilton Hindin Greene. "Investors are just changing tack a little bit here today away from the income stocks and more in towards the growth."

Orion Health Group, the health and management software system company, jumped 4.9 percent to $4.30.

"Investors are actually looking for a bit of growth and Orion is considered to be quite a high growth stock," Williamson said.

Retirement village operators advanced with Ryman Healthcare gaining 0.6 percent to $8 while Summerset gained 2.2 percent to $3.66.

"That is a good growth area that investors are comfortable investing," he said.

Meanwhile Metlifecare slipped 1 percent to $4.81.

The Fonterra Shareholders' Fund, which gives holders access to the dairy cooperative's dividend stream, increased 4.1 percent to $4.87. Units in the fund, which has declined 22 percent so far this year, advanced as "bargain hunting" investors bet the world's largest dairy exporter will benefit from a weaker New Zealand dollar, Williamson said.

National carrier Air New Zealand jumped 4 percent to $2.49 after declining 9.6 percent yesterday when Qantas Airways’ Jetstar unit said it planned to step up local competition. Jetstar said it still had to confirm which of seven prospective destinations it will fly to in New Zealand and Williamson said the announcement "lacked quite a bit of detail".

"I think investors overreacted a little bit yesterday and we are just starting to see a bit of a bargain hunting coming in to that stock."

Fletcher Building, the building supplies and construction firm, advanced 1.1 percent to $8.33. Spark, formerly Telecom Corp, gained 2.9 percent to $2.83. Auckland International Airport, New Zealand's busiest gateway, slipped 1 percent to $4.94.

BusinessDesk.co.nz

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