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MARKET CLOSE: Hallenstein Glasson falls, Telecom and Sky TV rise

Monday 30th May 2011

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Investors smacked Hallenstein Glasson Holdings for delivering a disappointing trading update but they liked a deal between Telecom and Sky Television.

Overall the benchmark NZX-50 index closed up 15.025 points, or 0.426%, at 3542.986. There were 45 rises and 34 falls among the 114 shares traded.

Telecom (NZX: TEL ) rose 6c to $2.43 and SkyTV (NZX: SKT ) rose 5c to $5.67 after saying Telecom will in future be able to offer all Sky products and services to its customers, rather than just the basic package.

The rise in Telecom's price came even though Fitch Ratings indicated the separation of Telecom's network from the rest of its business could cause a rating downgrade, echoing a similar sentiment from Standard and Poor's on Friday.

Peter Sigley at Goldman Sachs said there was huge interest in Telecom around its separation and ultrafast broadband.

Hallenstein Glasson (NZX: HLG ) fell 22c to $3.93 after the company reported disappointing sales, blaming exceptionally mild weather in May and other factors.

"This is what happens to retailers when despite their best efforts sometimes climatic conditions go against them," Sigley said.

He said the company had done "what a good retailer does, which is don't wait for the weather to come right and get ready for the next season." He expected a recovery in the stock in the future.

Market darling Mainfreight (NZX: MFT ) rose 14c to a record $10.50, following a stunning 47c rise on Friday as investors reacted well to the company's profit result delivered on Thursday.

Sigley said the logistics company offered growth prospects and delivered them.

Methven (NZX: MVN ) rose 3c to $1.44 after reporting a 39.3% fall in full-year net profit to $4.7 million, after providing for the loss of $2 million relating to the collapse of a large British customer.

Tower (NZX: TWR ) rose 3c to $1.79 after reporting interim earnings last week and as investors continue to assess the chances of its approach to AMI Insurance.

Kathmandu (NZX: KMD ) rose 8c to $2.35, The Warehouse (NZX: WHS ) rose 6c to $3.66 and Skellerup (NZX: SKL ) rose 3c to $1.31. OceanaGold (NZX: OGC ) rose 7c to $3.42.

There was good volume in Guinness Peat Group (NZX: GPG ) shares, which were unchanged at 84.5.

In the US, stocks received some help on Friday (local time) from a weaker greenback boosting metals prices and basic materials stocks.

Desks were short-staffed before the Memorial Day holiday that will keep US markets closed on Monday.

The Dow Jones industrial average added 0.3% to 12,441.58, the Standard & Poor's 500 Index rose 0.4% to 1331.10, and the Nasdaq Composite Index gained 0.5% to 2796.86.

For the week, the Dow lost 0.6%, the S&P shed 0.2% and the Nasdaq dropped 0.2%.

 

NZPA



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