MARKET CLOSE: NZ shares edge higher in mixed day, Pike River keeps climbing

Friday 9th April 2010

New Zealand shares edged higher today, led by Pike River Coal in its second day as the bourse’s top performer. The coal miner, which has finally begun shipping coal, is benefiting from strong coking coal prices.

The NZX 50 Index rose 2.48, or 0.1%, to 3310.24. Within the index, 20 stocks gained, 15 were unchanged and 15 declined. Turnover was $75.1 million.

“Positions were being squared up in the market today after Wall Street sent out mixed signals,” said Alan Moore, who helps manage $400 million at Milford Asset Management.

Moore said Pike River had finally seemed to resolve its ongoing problems, and he would not be surprised it is looking at a rights issue after extending its borrowing.

The stock surged 6.4% to $1.16. “It’s getting close to the stage where it’s starting to produce coal regularly for regular shipments,” he said.

Jeweller Michael Hill International jumped 5.7% to 74 cents after announcing its Australasian stores continued to bolster its overall performance, amidst tough conditions for its North American stores, and Moore said the company had been a stand-out in the retail sector, with “promising” results in Australia.

National carrier Air New Zealand Ltd. climbed 2.1% to a two-year high $1.45, and has surged 14% this month alone after analysts upgraded their recommendation for the stock, and the airline shot down suggestions that its high profile chief executive, Rob Fyfe, might be leaving the firm.

“Air New Zealand has come through the period in better shape than most airlines in the world” and investors were supporting that success, Moore said.

National gateway Auckland International Airport increased 1.5% to $2.02.

Manufacturer Steel & Tube Holdings rose 3.8% to $2.75 while NZ Refining Co. gained 2.3% to $3.94.

Clothing retailer Pumpkin Patch Ltd. fell 2.7% to $2.17 after going ex-dividend.

Goodman Property Trust shrank 1% to 99 cents after it announced Keith Smith was taking over as chairman of the board.

Former chair Jim McClay had to step down after he was appointed as New Zealand’s representative to the United Nations.

Dairy Equity announced its timeline to de-list from the bourse, along with a pay-out of 6.5 cents for investors, the day after Fonterra announced plans to issue non-voting units in a new shareholders fund that the public could invest in.

Businesswire.co.nz

Comments from our readers

No comments yet