Market close: NZX 50 rises for third day, NZ Oil & Gas gains with crude oil

Tuesday 21st October 2008

New Zealand stocks rose for a third day, extending a global rally, as central banks and governments prepared to extend efforts to revive financial markets. The NZX 50 Index rose 62.099, or 2.2%, to 2952.019. Turnover was NZ$80.3 million, less than the daily average NZ$100 million. New Zealand Oil & Gas Ltd. led the advance, gaining 14% after the price of crude oil rose. Shares on Wall Street rallied yesterday, sending the Dow Jones Industrial Average up 4.7% after Federal Reserve Chairman Ben Bernanke backed proposals to extend the bailout of financial institutions. The FTSE 100 rose 5.4% in London yesterday. In Tokyo today, the Nikkei 225 Index rose 1.8% in midday trading. Australia’s S&P/ASX 200 Index gained 2.9% to 4262.3 in late afternoon trading, led by commodity and energy companies. Rio Tinto surged 11% and Gloucester Coal gained 10%. The NZX 50 Index extended its three-day advance to almost 7%. “The market in general was getting better but still on a pretty low turnover,” said Stephen Wright, an adviser at ASB Securities. “There’s still a lot of investors sitting on the sideline.” New Zealand Oil & Gas rose 14% to NZ$1.23. Crude oil for November delivery rose 1.9% percent to US$75.69 a barrel on the New York Mercantile Exchange, the third daily gain, according to Bloomberg. Steel & Tube Holdings rebounded from a record 22% slump yesterday prompted by OneSteel’s decision to quit its takeover offer. Steel & Tube gained 6.7% to NZ$3.01 today. OneSteel had offered NZ$4 a share for the half stake in the company it didn’t already own. Telecom Corp., the biggest stock on the index, fell 2.4% to NZ$2.44 snapping a two-day gain that lifted the shares from a record low NZ$2.22 on Oct. 16. The shares have slid almost 8% in the past 5 days, weighed down by the company’s forecast for a profit drop next year because of spending on its high-speed mobile network. Among other stocks, Allied Work Force soared 24% to 62 cents after reporting a 31% gain in first-half profit and lifting its dividend 25% to 3.5 cents a share. The shares have tumbled 50% this year. Warehouse Group Ltd., the biggest retailer on the NZX, led gains in consumer-related stocks as central bank figures showed a rebound in credit card billings in September. Warehouse rose 4.7% to NZ$4.05 and jewelry chain Michael Hill International rose 4.5% to 70 cents. Woolworths Ltd., Australia’s biggest retailer, today said sales from its New Zealand supermarkets rose 3.1% in kiwi dollars. Stocks have also been buoyed by the prospects of the central bank making a record-sized cut to the official cash rate this week, which may drive down credit costs. Governor Alan Bollard may reduce the OCR by 100 basis points to 6.5% on Thursday, according to a Reuters survey. (Businesswire.co.nz)

NZ Top 50	2,952.019	+62.099 (+2.15%)
ASX 200	4,302.500	+160.200 (+3.87%)
Dow	9,265.43	+413.21 (+4.67%)
Nasdaq	1,770.03	+58.74 (+3.43%)
FTSE 100	4,282.67	+219.66 (+5.41%)

Last updated: 21/10/2008 5:08pm

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