CLOSE: NZX 50 rounds out 9-day rally; Auckland Airport gains

Friday 24th July 2009

New Zealand shares chalked up their ninth straight daily advance, with Auckland International Airport rising on renewed prospects of a foreign takeover, and New Zealand Refining gaining on the report that U.S. refiner Valero Energy Corp. may acquire a stake.

The NZX 50 Index rose 42.54, or 1.5%, to 2961.17. Within the index, 38 stocks rose, five fell and six were unchanged. Turnover was $117 million.

Auckland Airport (NZX: AIA ) rose 4.9% to $1.72 after Finance Minister Bill English said yesterday that foreign investors may face a lower hurdle under changes to the overseas investment regime. The Canada Pension Plan Investment Board was thwarted in its partial takeover attempt for the airport a year ago.

“The Canadian got sent packing empty handed,” said Craig Brown, equities manager at ING New Zealand. “People are drawing the conclusion it would be a bit more takeover-friendly.”

New Zealand Refining (NZX: NZR ) rose 4.9% to $7.50. Valero is considering a bid for all or part of the refining company, according to a Bloomberg report. As much as 36% of the refinery may be up for sale, as Shell NZ and Exxon Mobil consider selling their stakes.

Fisher & Paykel Appliances (NZX: FPA ) rose 6.4% to 83 cents, leading the NZX 50 higher, amid optimism the prospects for the world economy are getting less worse, which may herald a recovery in demand for household items such as fridges and washing machines.

Guinness Peat Group (NZX: GPG ), which is hoping for a pick-up in its Europe-based Coats thread-making business, rose about 6% to 71 cents.

PGG Wrightson (NZX: PGW ), the nation’s biggest rural services company, gained 4.3% to 98 cents, recovering from its decline yesterday when chairman Craig Norgate stood down. Brown said Wrightson isn’t currently considered as insto quality and has some issues to address.

Carpet maker Cavalier Corp (NZX: CAV ). rose 3.8% to $2.20. The stock is rated a ‘hold’ according to the consensus of four recommendations compiled by Reuters. One analyst rates it a ‘buy.’

Air New Zealand (NZX: AIR ) climbed 1% to 99 cents after reporting a 5.5% decline in total passengers carried last month from a year earlier, less than the 9.9% fall it reported for May. The airline cut capacity by 12.3%lifting its load factor by 2 points to 79.5%.

Rakon Ltd (NZX: RAK ) rose 2.1% to $1.45 and Goodman Property Trust (NZX: GMT ) advanced 3.2% to 97 cents.

Sky City Entertainment Group (NZX: SKC ) was the biggest decliner on the NZX 50, falling 3% to $3.10.

The Dow Jones Industrial Average topped 9000 points yesterday for the first time since January on a pickup in home resales and better earnings companies including Ford Motor Co.

Shares extended their gains in Asia today after figures showed South Korea’s gross domestic product rose 2.3% percent in the second quarter, lifting optimism the region’s growth will revive.

Japan’s Nikkei 225 Index rose 1.6% to 9944.55 in early afternoon trading. Australia’s S&P/ASX 200 index rose 0.6% to 4089.80.

Businesswire.co.nz

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