MARKET CLOSE: NZ shares rise before Anzac Day; Chorus up on ASX 200 membership

New Zealand shares rose ahead of Tuesday's Anzac Day holiday. Chorus led the advance on news it will be added to the S&P/ASX 200 Index and Fletcher Building extended its gains after touching a 12-month low last week.

The S&P/NZX 50 Index gained 25.72 points, or 0.4 percent, to 7222.94. Within the index, 29 stocks gain, 10 fell and 11 were unchanged. Turnover was $105 million. 

Chorus rose 3.2 percent to $4.345. Its shares will join the ASX 200 on May 2, bringing to eight the number of New Zealand companies with a primary listing on the NZX that are also on the Australian index and putting the stock on the radar of fund managers that use it as a benchmark.

The gain in Chorus "will be on the back of a number of funds having to reweight accordingly," said Grant Williamson, a director at Hamilton Hindin Greene.

Fletcher rose 1.3 percent to $8.01. The shares fell as low as $7.77 last week, the lowest since April 12, 2016. Fletcher has shed a quarter of its market value this year after the company said complications with two major construction projects meant it wouldn't meet full-year guidance.

NPT shares fell 3.2 percent to 61 cents following Friday's special meeting of shareholders that voted against a deal with Kiwi Property Group and instead opted to oust chairman Tony Sewell and Jim Sherwin from the board, part of a rival strategy driven by major shareholders Augusta Capital and Salt Funds Management. They voted to install Augusta chair Paul Duffy, and independent directors Allen Bollard and Bruce Cotterill. Kiwi Property was unchanged today at $1.41.

"That's put a bit of pressure on the share price," Williamson said. "We really need to find out what Augusta is looking to do now it is back in charge."

Vital Healthcare Property Trust rose 1.9 percent to $2.20 and Metro Performance Glass gained 1.6 percent to $1.28. Trade Me Group rose 1.6 percent to $5.20 and Tourism Holdings rose 1.4 percent to $3.70.

Genesis Energy was the biggest decliner on the benchmark index, falling 0.7 percent to $2.075.

ERoad was unchanged at $2 after the company said its annual loss widened in the 2017 financial year as a boost to investment in the US and changes to the way it amortises development costs weigh on the bottom line, even as sales continue to grow. 

Gentrack Group rose 0.5 percent to $4.40 after the utilities software developer said it will pay 41 million Danish krone, or NZ$8.4 million, for 79.8 percent of Denmark-based Blip Systems and 7.5 million euro, or NZ$11.4 million, for 75 percent of Malta-based CA Plus,as part of a strategy to double earnings from its airport software business by 2019. The acquisitions have three-year earn-out agreements for the remaining stakes.

"It has been one of the better software/IT companies to come out of the woodwork in recent times," Williamson said.

(BusinessDesk)