MARKET CLOSE: NZ stocks rise; Warehouse, Rakon, Pike River lead gains

Monday 4th October 2010

New Zealand stocks rose today following gains in Asian markets on a day marked by tight volumes with China and parts of Australia closed for public holidays.

The Warehouse, Rakon, and Pike River Coal led rises on the bourse.

The NZX 50 Index rose 16 points, or 0.5%, to 3,228.9. Within the index, 27 stocks rose, 16 fell and seven were unchanged. Turnover was a lower-than-average $45.3 million.

With China closed for the Golden Week holidays, Japan’s Nikkei 225 was last up 0.3% up at 9,427.8, Hong Kong’s Hang Seng Index was up 1.3% at 22,650.6, and Singapore’s Straits Times Index was up 0.8% at 3,157.1.

“With most of Australia closed for holidays we’ve drifted higher on the positive flows we saw on Friday,” said Rickey Ward, domestic equities manager at Tyndall Investment Management.

The Warehouse (NZX: WHS ) rose 3.7% to $3.97, Rakon (NZX: RAK ) rose 3.3% to $1.25, and coal miner Pike River Coal (NZX: PRC ) rose 2.6% to $1.13

Property stocks maintained their momentum this week. The NZSX Property Index rose 0.9% to 799.4. Property for Industry (NZX: PFI ) rose 2.7% to $1.19, Vital Healthcare Property Trust, formerly known as ING Medical Property, rose 2.4% to $1.28, and National Property Trust (NZX: NAP ), which plans to dump its manager and become a company, rose 2% to 75 cents.

Rubicon (NZX: RBC ) rose 1.3% to 80 cents after ArborGen, the tree seedling company in which it owns a 33% stake, announced plans to raise up to US$75 million in a US initial public offering. Summerville, South Carolina-based ArborGen will use the proceeds to buy a new headquarters, manufacturing and research laboratories and to repay debt, it said. Other shareholders are International Paper and MeadWestvaco.

OceanaGold (NZX: OGC ) rose 0.4% to $5.02 after announcing two appointments related to the re-activated Didipio Gold-Copper Project in Luzon, the Philippines. Martyn Creaney was named project director. Mark Cadzow, currently chief operating officer for New Zealand, was named group chief operating officer, covering all of the company's operations.

Cavalier (NZX: CAV ) fell 4.5% to $2.95, leading falls on the NZX 50.

Goodman Fielder(NZX: GFF ) fell 3.9% to $1.73 after the company announced that its New Zealand unit is planning to sell up to $250 million of bonds and is seeking preliminary indications of interest from existing investors.

Tower (NZX: TWR ) fell 0.5% to $1.86 following its $118 million offer for Fidelity Life. Tower has offered $82 a share for Fidelity, made up of $55 cash and $27 of Tower shares.

“Most people are grappling with the offer, its likely success, and what it means for the share price. To me it seems a little hostile,” Ward said.

Fisher & Paykel Appliances (NZX: FPH ) fell 1.7% to 57 cents after the company sold the majority of its Cleveland manufacturing site in Queensland, Australia, for A$21.5 million. The proceeds will be used to repay debt and the company will lease back part of the facilities to house its sales team and warehouse operations.

SmartPay (NZX: SPY ) fell 2.9% to 0.33 cents after company said it is exploring the possibility of listing on the ASX as part it is major push into the Australian market.

The company, through its Australian Cadmus Australia subsidiary, already has 12,000 terminals in the market with Bank of Bendigo and Live Group (TaxiEPay). Managing director Ian Bailey said "an ASX listing is an appropriate and logical”.

Lyttelton Port (NZX: LPC ) was unchanged at $2.49 after the company cancelled its protracted merger talks with Port Otago last week to focus on repairing the infrastructure damage caused by the Canterbury earthquake.

The New Zealand Council for Infrastructure Developments said the decision is a missed opportunity to optimise the freight transport network and is likely to have a significantly negative impact on both companies down the line.

Businesswire.co.nz

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