MARKET CLOSE NZ shares gain with ASX rebound; Fletcher, OceanaGold rise

Tuesday 2nd July 2013

July 2 (BusinessDesk) - New Zealand shares rose after a strong rebound in the Australian market helped lift companies with significant business across the Tasman, including Fletcher Building. OceanaGold surged after spot gold rebounded from a three-year low.

The NZX 50 Index gained 40.203 points, or 0.9 percent, to 4458.254. Within the index, 31 stocks rose, 14 fell and five were unchanged. Turnover was $93 million.

Australia's S&P/ASX 200 Index was up 2.2 percent in afternoon trading after the central bank kept its cash rate at 2.75 percent and said it still had room to cut borrowing costs given the outlook for inflation.

Fletcher Building, the construction and building materials company, rose about 3 percent to $8.66. Pumpkin Patch, the children's clothing retailer that counts Australia as its biggest market, rose 2.5 percent to 82 cents. Brisbane-based jeweler Michael Hill International rose 0.8 percent to $1.32.

"The market is just following the rest of Asia," said Matt Goodson, managing director at Salt Funds Management. "Fletcher has about half its business in Australia these days."

OceanaGold, the operator of the Macraes gold field, rose 13 percent to $1.70 as the price of gold bounced from its lows.

"OceanaGold is quite a high-cost gold producer so it's very leveraged to gold price rises and declines," Goodson said.

Chorus, the network operator spun off from Telecom in 2011, rose3.7 percent to $2.51 as investors speculated on the likely outcome of the Commerce Commission's plans to regulate the prices it can charge rivals. Telecom rose 1.4 percent to $2.235.

Tower gained 2.1 percent to $1.99 after naming director David Hancock as its new chief executive, replacing Rob Flannagan who resigned from the general insurer in March.

Restaurant Brands New Zealand rose 0.4 percent to $2.80 after chairman Ted van Arkel said the fast-food operator is closing unprofitable Starbucks stores ahead of a decision on whether to sell the chain.

PGG Wrightson, the rural services company, rose 3.3 percent to 31 cents after figures showed New Zealand commodity prices rose last month in New Zealand dollar terms as the kiwi dollar fell.

Argosy Property rose 1 percent to 97 cents, clawing back some ground from yesterday after it had announced plans to raise more equity capital.

Xero rose 1.2 percent to $16.40 and Diligent Board Member Services gained 0.7 percent to $6.90.

TrustPower rose 2.9 percent to $7.36 and SkyCity Entertainment Group rose 1.2 percent to $4.40.

(BusinessDesk)

BusinessDesk.co.nz

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