NZX CLOSE: NZ shares open 2010 on upbeat note, F&P Appliances gains

Tuesday 5th January 2010

New Zealand shares followed the upbeat sentiment around the world in their first day of trading this year as investors look forward to consolidating on 2009’s gains.

The NZX 50 Index rose 38, or 1.2%, to 3268.18. Within the index, 23 stocks rose, 12 declined and 15 were unchanged. Turnover was $26.8 million in a quiet opening with a lot of investors still on summer holiday.

Fisher & Paykel Appliances Holdings (NZX: FPA ) started the year in positive mood, climbing climbing 6.9% to 62 cents after a tough 2009, when more than a third of the value of its shares was wiped out and the iconic manufacturer was forced to offer deeply discounted shares to bring on a new cornerstone investor in Chinese whiteware manufacturer Haier.

Rural services company PGG Wrightson Ltd (NZX: PGW ) gained 5.2% to 61 cents and NZ Farming Systems Uruguay Ltd (NZX: NZS ) rose 4.2% to 50 cents.

Retailer Warehouse Group (NZX: WHS ) sank 3.3% to $4.07 after it announced flat sales over the Christmas shopping period and indicated it expects other retailers will report similar experiences.

Craig Brown, who helps manage $3.3 billion worth of assets at ING New Zealand, said “retailers are under pressure” though investors will have to wait to see how others performed over the holiday period. The Warehouse’s announcement “looks a touch disappointing,” Brown said. If the retailer’s rivals don’t report flat sales through December “it suggests they’re losing market share.”

Fellow retailers Pumpkin Patch Group (NZX: PPL ) and Kathmandu Holdings (NZX: KMD ) also lost ground on the top 50 today, falling 0.5% to $2.04 and 1% to $2.02 respectively.

Carpet marker Cavalier Corp (NZX: CAV ) shed 4.7% to $2.65, leading the decliners on the index, though Brown said it had a “wide spread” on thin trading today and it wasn’t indicative of the company’s underlying business. Cavalier was the third-best performer in the top 50 last year as it surged some 65% on better-than-expected results in a subdued housing market.

In the wider exchange OceanaGold Corp (NZX: OGC ), which operates the Macraes gold mine near Dunedin, advanced 9.2% to $2.38 as the price of gold rose. Gold for February delivery rose 2.4% to US$1,122.10 an ounce on the New York Mercantile Exchange.

Casino operator Sky City Entertainment Group (NZX: SKY ) rose 3.6% to $3.42 and Guinness Peat Group (NZX: GPG ), the investment company chaired by Ron Brierley, rose 3.6% to 87 cents.

Insurer Tower Ltd (NZX: TWR ), which is part-owned by GPG, gained 3.5% to $2.07.

Businesswire.co.nz

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