CLOSE: Shares rise for second day; Nuplex, Infratil gain

Wednesday 15th July 2009

New Zealand shares rose for a second day as investors worldwide took comfort from better-than-expected earnings of U.S. companies such as Intel and Goldman Sachs, stoking optimism for global growth and risk appetite.

The NZX50 climbed 15.58, or 0.6%, to 2764.08, the biggest gain since June 30. Within the index, 29 stocks rose, nine fell and 13 were unchanged. Turnover was $88.3 million.

Nuplex Industries (NZX: NPX ), the specialty chemicals maker, rose 3.3% to $1.58.

Investment group Infratil Ltd (NZX: IFT ), which is getting an influx of funds from the expiration of its underwritten warrants, gained about 3% to $1.74. The Accident Compensation Corp. increased its holding in Infratil to 6.59% from 5.04% after exercising warrants and buying shares on market, it said today.

Shares of Intel, the world’s biggest chipmaker, rose as much as 8.4% in after-hours trading in the U.S. after forecasting higher-than-expected third-quarter sales. Goldman Sachs posted record second-quarter earnings, on trading revenue and fees for stock underwriting.

Seeka Kiwifruit Industries (NZX: SEK ), which handles around 26% of New Zealand's kiwifruit crop, jumped 13% to $2.60 after announcing it will write off its investment in Vital Foods this year, with a $1.79 million impairment in earnings. Vital had proposed a capital raising which would water down Seeka’s stake.

AMP NZ Office Trust (NZX: APT ) gained 2.9% to 72 cents. The country's largest listed commercial property investor this week said the value of its Queen Street development has been "significantly" affected by the global downturn. Still, chief executive Robert Lang said the trust has a "resilient portfolio" with current occupancy around 97%, and said contract rentals are continuing to grow. The units have an average rating of ‘outperform,’ based on recommendations compiled by Reuters.

Genesis Research and Development (NZX: GEN ), the biotech company developing gene silencing technology, soared 22% to 11 cents after announcing yesterday it will make an offer under a share purchase plan to sell up to 7.8 million shares at 6 cents apiece, raising as much as $470,000.

Charlie's Group (NZX: CHA ) sank 7% to 9 cents after the juicemaker yesterday forecast a bigger-than-expected full-year loss as a drop-off in New Zealand sales outweighs growth in Australian markets. It expects a net loss of between $1.8 million and $1.95 million this year, with domestic sales declining 2%, rising costs of raw materials, and increased discounts on some items.

PGG Wrightson (NZX: PGW ), the nation’s biggest rural services company, fell 5.7% to $1, leading the index lower.

Medical supplies distributor Ebos Group (NZX: EBO ) fell 2.5% to NZ$5.07.

New Zealand Refining (NZX: NZR ) slipped 2.3% to NZ$6.79 after Dow Jones reported that India's Hindustan Petroleum Corp. is considering a plan to acquire Royal Dutch Shell Group’s refining and distribution assets in New Zealand, including its 17% stake in NZ Refining.

Businesswire.co.nz

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