MARKET CLOSE: NZ shares edge up; F&P Appliances, ING rise

Friday 12th June 2009

New Zealand shares rose as optimism the global recession is easing lifted equity markets from New York to Tokyo. Fisher & Paykel Appliances and ING Property Trust led gainers.

The NZX 50 Index rose 13.28, or 0.5%, to 2809.82. Within the index, 21 stocks rose, 16 fell and 13 were unchanged. Turnover was $104 million. F&P Appliances climbed 4.8% to 66 cents and is down about 12% in the past week. ING rose 3.6% to 58 cents.

Amid signs of life returning to the global economy, China’s retail sales posted a 15% jump last month, the biggest gain in four months, according to government figures. Retail sales in the U.S. rose 0.5% last month, according to the Commerce Department yesterday. Japan’s Nikkei 225 Index rose 1.6% to 10135.82 today, while the Hang Seng rose 1.2% to 19024.43 in Hong Kong. Australia’s S&P/ASX 200 rose 0.4% to 4062.20.

Jeweller Michael Hill International (NZX: MHI ) rose 3% to 69 cents, leading gains among New Zealand retailers after government figures showed retail sales rose more than expected in April, as motor vehicle retailing surged and sales rose at department stores.

Children’s clothing chain Pumpkin Patch (NZX: PPL ) advanced 2.3% to $1.35 and clothing retailer Hallenstein Glasson Holdings (NZX: HLG ) rose 2% to $2.50.

Total retail sales rose 0.5% in April, seasonally adjusted, after sinking a revised 0.2% in the previous month, according to Statistics New Zealand. Sales were more than twice the 0.2% gain forecast by economists in a Reuters survey. Excluding autos, core retail sales declined 0.1% against expectations of a 0.4% gain.

The data suggests “a slow grinding recovery in the retail sector,” said Bernard Doyle, New Zealand strategist at Goldman Sachs JBWere. “It is difficult to see explosive recovery anytime soon, with unemployment likely to rise through most of 2009.”

Warehouse Group (NZX: WHS ), the biggest retailer on the NZX 50, slipped 0.3% to $3.74.

New Zealand Oil & Gas (NZX: NZO ) fell 1.2% to $1.60 after Origin Energy, the operator of the Kupe gas field, said raw gas wouldn’t flow until the fourth quarter, later than expected. NZOG owns 15% of the field, which is expected to meet 15% of the nation’s annual gas demand over the next 15 to 20 years.

“It is now likely that production during the December quarter will be reduced,” NZOG chief executive David Salisbury said.

NZX (NZX: NZX ), which operates the stock market, fell 0.6% to $7.75 after Australian stock market operator NSX said a proposal for NZX to take a majority stake was unlikely to succeed. NSX has recently appointed new directors and the transaction had been favoured by the old board, it said.

Foodmaker Goodman Fielder (NZX: GFF ) fell 3.4% to $1.71, the biggest decline of the NZX 50 today. Carpet maker Cavalier (NZX: CAV ) fell 2.7% to $1.80 and transport operator Mainfreight (NZX: MFT ) slipped 1.9% to $4.12.

Geneva Finance (NZX: GFL ) was unchanged at 8 cents after the finance company that won support from investors for a debt-to-equity swap to stave off collapse, pared its full-year loss as it cut costs and restructured its balance sheet. The company posted a $7 million full year loss, an improvement on its $7.9 million loss last year. Operating expenses fell 25% to $20.1 million, outstripping the 14% decline in revenue to $38.8 million.

Businesswire.co.nz

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