MARKET CLOSE: NZX 50 rises for first day in four, Nuplex leads

Thursday 2nd April 2009

New Zealand's NZX 50 Index rose for the first day in four as optimism the U.S. economy may be reviving from its slump helped lift stocks worldwide. Nuplex Industries gained on an ex-rights basis.

The NZX 50 rose 16.56, or 0.6%, to 2585.80. Within the index, 22 stocks rose, 16 fell and 12 were unchanged. Turnover was better-than-average $106.7 million.

Nuplex, which won support from institutions for a share sale at a deep discount to strengthen its balance sheet, gained 9.1% to 33 cents after adjusting for the seven-for-one rights issue that close yesterday. The shares are down 73% in the past three months. Tower rose 6.4% to $1.33 and Contact Energy rose 4.3% to $5.80.

The Dow Jones Industrial Average climbed 2% in New York, led by banks, after figures showed sales of existing homes rose in February and manufacturing grew less weak in March. In Asia today, Japan's Nikkei 225 Index surged 4.2% to 8705.02, with Nissan and Honda climbing after better-than-expected U.S. auto sales.

Australia's S&P/ASX 200 Index rose 2.8% to 3680.20, with financials following gains in U.S. banks after Treasury Secretary Timothy Geithner said there are "encouraging signs" of recover in financial markets.

National Australia Bank rose 5.5% to $21.44. Qantas Airways rose 6.8% to A$1.82 after announcing a restructuring of Jetstar Asia and ValuAir. Property investors also rallied.

On the NZX 50 today, Fletcher Building fell 5.7% to $5.85 after announcing it had raised $406.5 million selling shares to 76 million shares to institutions at $5.36 apiece. It aims to raise a further $100 million by way of a share purchase plan for existing shareholders in New Zealand and Australia, with a top-up of as much as $20 million.

Accounting software firm Xero jumped 11% to $1.02 after the company said it is in talks with investors about a "significant capital raising" via a share placement to institutions and a share offer to retail investors. The shares may be sold at 90 cents apiece based on the talks, it said.

Businesswire.co.nz

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