Monday 12th October 2009 |
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New Zealand shares edged higher in light trading, lagging gains on Wall Street as the resilient kiwi dollar weighed on stocks with overseas revenue. Skellerup Group led gainers and Fisher & Paykel Appliances was the biggest decliner.
The NZX 50 Index rose 15.63, or 0.5%, to 3178.88. It has see-sawed between gains and losses for the past six sessions. Within the index, 28 stocks rose, 14 fell and nine were unchanged. Turnover was $63 million.
Skellerup rose 5.7% to 56 cents. The rubber goods and milking equipment maker this month reached its target of raising $21.54 million from its rights issue. The funds will be used to repay bank debt.
Cavalier Corp. rose 3.3% to $2.48. The carpet-maker’s chief operating officer Colin McKenzie was named to Agriculture Minister David Carter’s task force considering the future of the nation’s strong-wool industry.
Jeweller Michael Hill International climbed 1.4% to 72 cents after reporting a 2.3% gain in same-store sales growth in Australia, which accounts for 68% of the group’s revenue. Margins contracted in Australia and New Zealand as the retailer discounted stock to maintain sales and spent more on promotions, according to chairman Michael Hill. The shares have gained 39% this year.
“Overall they were pretty respectable sales figures for Michael Hill,” said Grant Williamson, a director at brokerage Hamilton Hindin Greene in Christchurch. “Christmas is the big retail season for them.”
Williamson said with little local corporate news, “it’s all eyes on the U.S. with their quarterly reports.”“The local market is underperforming a little on the strength of the New Zealand dollar,” he said. “It’s going to hurt some local corporate earnings.”
F&P Appliances fell 2.9% to 66 cents. Its sister company, Fisher & Paykel Healthcare, sank 0.3% to $3.01, a three-month low. The manufacturer of breathing masks and respirators gets almost 80% of its revenue in U.S. dollars.
The New Zealand dollar reached a 14-month high 74.5 U.S. cents last week and recently traded at about 73 cents. The kiwi has gained almost 50% from its lows in March.
Rakon Ltd., which sells components for navigation systems in the U.S., Europe and Asia, declined 2.5% to $1.19.
Windflow Technology Ltd, gained 4.8% to $1.30 after announcing it is close to securing a second buyer for its two-bladed turbines following approval of a resource consent for the Long Gully windfarm near Wellington. State-owned MightyRiverPower, which owns 20% of Windflow, would own and operate the 25 turbine project.
Auckland International Airport climbed 1.6% to $1.97. The nation’s busiest gateway today said it plans to raise up to NZ$125 million selling five-year bonds to the public. The offer will open later this month, it said.
Businesswire.co.nz
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