MARKET CLOSE: NZX 50 climbs; Warehouse up on trading results

New Zealand shares rose, with the NZX 50 Index edging up to a six-month high, after Warehouse Group said profit won’t fall this year and Pike River Coal jumped. The NZX 50 rose 18.27, or 0.6%, to 2873.13, the fifth straight gain to the highest since early November. Within the index, 27 stocks rose, 19 fell and four were unchanged. Turnover was $91.5 million.

Warehouse, the biggest retailer on the NZX 50, gained 2.7% to $3.85, the highest since Nov. 10. Third-quarter sales fell 2.8%, reflecting its exit from fresh groceries and liquor. Chief executive Ian Morrice said full-year adjusted net profit will be about the same as 2008, when it posted earnings of $80.9 million.

“Despite a slower than preferred start to winter we are confident that our strong seasonal offer will support continued positive momentum,” he said.

Kiwi Income Property Trust rose 4.4% to 94 cents. New Zealand’s listed property sector provides “sound investment attributes” amid the challenges of global financial markets, said Chris Gudgeon, chief executive of the trust’s manager. The trust’s unit purchase plan opens on May 18, with the aim to raise $15 million, adding to the $50 million raised in a placement last month.

Tower rose 5.8% to $1.63 and Pike River rose 12% to $1.02. Sky City Entertainment Group gained 3.8% to $3.04

NZX edged up 0.1% to $7.74, the highest since June last year and bringing its gain this year to 42%. The board of NSX, an Australian stock exchange for small and medium-sized companies, has recommended the New Zealand stock market operator be allowed to buy 50.1% of the company, giving it a broader foothold in the Australian market.

The total cost is A$11.78 million. “NZX is well positioned to create a significantly improved earnings outlook for NSX, and to execute a growth strategy at a low marginal cost,” NZX chief executive Mark Weldon said in a statement.

Fishing company Sanford rose 2.7% to $5.70 and TrustPower gained 2.7% to $7.50.

NZ Farming Systems Uruguay was the biggest decliner, sliding 8.9% to 51 cents.

Telecom slid 3.6% to $2.72. The impact of the global economic slump “on Telecom’s operations has remained consistent at up to $10 million each quarter this financial year,” said chief executive Paul Reynolds said today. The biggest company on the NZX 50 posted a 14% gain third quarter profit, helped by dividends from Southern Cross Cable. It kept its guidance unchanged for weaker full-year earnings.

Australian rival Telstra dropped 4.2% to $4.10 on the NZX after announcing a leadership shakeup. David Thodey was named new CEO after the previously-announced departure of Sol Trujillo, whose term was characterized by clashes with the government over reforms. Chairman Donald McGauchie resigned and was replaced by Catherine Livingstone.

Businesswire.co.nz

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