MARKET CLOSE NZ shares rise for 7th session; Telecom, OGC gain, Diligent falls

Friday 12th July 2013

New Zealand shares rose for the seventh straight session amid confidence the Federal Reserve won't rush to end its stimulus programme and as earnings season looms at home. Telecom and OceanaGold rose while Diligent Board Member Services fell.

The NZX 50 Index gained 8.279 points, or 0.2 percent, to 4568.333. Within the index, 22 stocks rose, 16 fell and 12 were unchanged. Turnover was $138 million.

"The market's bouncing back from being oversold on the back of a more calming discussion from the Federal Reserve," said Shane Solly, portfolio manager at Mint Asset Management. "Relatively easy settings are in place for a bit longer. The New Zealand market looks quite attractive in that environment - a bit of growth, a bit of yield."

Institutions are also looking at issues coming to market, such as Telecom rose 2 percent to $2.295. The government's plan to auction 4G spectrum in September or October faces delay, with Maori claimants to spectrum rights reactivating a dormant claim to the Waitangi Tribunal by seeking an urgent hearing on the claim.

OceanaGold, the operator of the Macraes gold field, rose 5.2 percent to $1.81. Spot gold traded at US$1,288.25 an ounce, having climbed back from the lowest in almost three years.

Diligent declined 4.4 percent to $6.36 after the company said it would delay its second-quarter earnings release after saying it needed to reassess how it booked revenue.

Fletcher Building fell 0.1 percent to $8.54. Among this year's stellar performers, Xero fell 3.4 percent to $16.95 and Ryman Healthcare fell 1.2 percent to $6.90.

Shares in MightyRiverPower fell 0.9 percent to $2.34 before the stock exchange announced the State-controlled power company will join the top 50 index on July 22. The power company is the sixth biggest company on the exchange, valued at $3.3 billion.

Energy Mad sank 5.6 percent to 34 cents after the efficient light bulb maker said first-quarter earnings were $120,000, ahead of the $7,000 previously expected. Earlier this week the Christchurch-based company said its first-quarter earnings were profitable without giving any details.

Retailers were mixed as economists predicted a tepid pace of inflation in the second quarter, with little chance of price increases to pass on to consumers. Jewellery chain Michael Hill International fell 2.3 percent to $1.27, and clothing chains Hallenstein Glasson and Pumpkin Patch dropped 1.6 percent to $4.86 and 1.2 percent to 81 cents respectively.

Warehouse Group, the biggest listed retailer, rose 0.8 percent to $3.78 and outdoor equipment chain Kathmandu gained 0.8 percent to $2.60.

Rakon was unchanged at 23 cents after chairman Bryan Mogridge said there hadn't been any insider trading in the lead-up to announcing its sell-down of its stake in a Chinese factory. The New Zealand Shareholders' Association contacted the stock exchange over an "unusual" gain in Rakon's share price ahead of the announcement last week, the New Zealand Herald newspaper reported.

(BusinessDesk)

BusinessDesk.co.nz

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