NZX CLOSE: NZX 50 climbs to month-high; Warehouse gains

Friday 11th September 2009

New Zealand shares rose, nudging the NZX 50 Index to the highest in a month, after Warehouse Group posted results that showed it can weather a recession.

The NZX 50 rose 10.49, or 0.3%, to 3137.18, the second daily advance. Within the index, 24 stocks rose, 17 fell and eight were unchanged. Turnover was $73.9 million.

Warehouse (NZX: WHS ) climbed 5.2% to $4.25, the highest close since June 25, after surprising investors with a special 10 cents a share dividend, and showing its control of inventory and costs are giving it resilience in a downturn. The profit margin at its Red Sheds widened.

“There’s no doubt some of the things they put in place a few years ago are starting to pay off,” said Shane Solly, portfolio manager at Mint Asset Management, which oversees between $50 million and $100 million of funds for high net worth individuals. “The dividend was a bonus.”

Fisher & Paykel Healthcare (NZX: FPH ) slipped 0.9% to $3.37 as the kiwi dollar held above 70 U.S. cents. A high kiwi reduces the value of U.S. dollar sales. Sanford Ltd (NZX: SAN ), the fishing company that exports most of its catch, fell 1.2% to $5. Rakon Ltd (NZX: RAK ), which sells its crystal oscillators in Europe, the U.S. and Asia, declined 2.2% to $1.35.

Solly is more bullish medium term than for the next few months. “In the medium term we’re seeing good building blocks for a sound ongoing recovery. We’re not in the deep, dark place that we were.”

Pyne Gould Corp (NZX: PGC ). slipped 0.9% to $1.09. The company announced it has replaced its chief financial officer just days before it is scheduled to announce capital raising plans. The company named former bank executive Sean Kam as chief financial officer, replacing Alan Williams, who will move to a new role as head of product and distribution development.

Skellerup Holdings (NZX: SKL ), the rubber goods and milking equipment company, rose 4.8% to 66 cents.

Mainfreight Ltd (NZX: MFT ), the biggest trucking firm on the NZX 50,rose 3.6% to $5.13. Steel & Tube Holdings (NZX: STU ), which supplies steel building materials, rose 3.2% to $3.55.

NZ Farming Systems Uruguay (NZX: NZS ) fell 4.3% to 45 cents, the biggest decline on the index today. The shares have declined from as much as $1.90 in May 2008. Drought and the credit crisis sapped its growth though it has since gained Singapore’s Olam International as a shareholder.

Foodmaker Goodman Fielder (NZX: GFF ) fell 2.4% to $2 while Ryman Healthcare (NZX: RYM ) gained 2.7% to 1.88.

Businesswire.co.nz

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