NZX CLOSE: Shares rise; Fletcher gains on building consents, Telecom up

Friday 28th August 2009

New Zealand shares rose as a rebound in building consents help lift Fletcher Building and Telecom Corp chief executive Paul Reynolds made upbeat comments about the government’s approach to regulation.

The NZX 50 Index rose 32.92, or 1.1%, to 3109.34. Within the index, 25 stocks rose, 18 fell and seven were unchanged. Turnover was $63 million.

Fletcher Building (NZX: FBU ), New Zealand’s biggest construction company, gained 2.3% to NZ$8.02, the first close above $8 since May 1998. Government figures today showed home-building consents climbed 5% in July after slumping 9.6% in June.

“Today’s consent issuance suggests the construction industry is close to reaching a turning point,” said Jane Turner, economist at ASB.

Telecom (NZX: TEL ) gained about 3% to $2.79 after CEO Reynolds said the government is showing “increasingly rational” behavior in the way it regulates the $7 billion telecommunications market, the Independent reported. The government is expected to release its broadband fibre network strategy in the next month amid speculation it will be more favourable to Telecom, the report said.

Auckland International Airport (NZX: AIA ), the nation’s busiest gateway, rose 0.6% to $1.76 after reporting underlying earnings in line with its guidance. Net profit tumbled 63% after it recognized a decline in the value of its property.

Pyne Gould Corp (NZX: PGC ), the owner of the MARAC finance business, jumped 11% to $1.14. Today it posted a full-year loss of $54.4 million, reflecting a $59 million impairment on MARAC’s property development loans and a loss of $13.8 million on its 21% holding in PGG Wrightson.

Delegat’s Group Ltd (NZX: DGL ) jumped 9.2% to $2.37 after posting a 57% gain in annual profit to a record $30 million, as predicted, on surging demand for its Oyster Bay brand wines.

Managing director Jim Delegat said profit in 2010 will at least match the 2009 result and sales will rise.Charlie’s Group Ltd. fell 5.4% to 8.8 cents after posting a second full-year loss on rising costs to expand in Australia and run down deleted products.

Skellerup Holdings (NZX: SKL ) climbed 7.6% to 57 cents, leading the index higher, a day after the manufacturer of rubber goods and milking equipment reported a net profit of $9.2 million and announced a fully underwritten rights issue to raise $21.5 million.

Nuplex Industries (NZX: NPX ) gained about 6% to $2.49, its second daily advance after the specialty chemicals maker posted full-year earnings that beat its guidance and announced a special dividend.

Businesswire.co.nz

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