NZX CLOSE: NZX 50 falls; Wrightson, Allied Farmers slide; AIA gains

Friday 11th December 2009

New Zealand shares fell, led by rural services group PGG Wrightson on a day the stock exchange referred concern about unusual trading in Allied Farmers to the Securities Commission. Allied fell to a new record low.

The NZX 50 fell 4.3, or 0.1%, to 3127.98, the fifth decline in six days. Within the index, 16 stocks fell, 18 rose and 16 were unchanged. Turnover was $86 million.

Wrightson led the index lower, sliding 3.2% to 60 cents. Allied Farmers fell 5% to 19 cents on the final day of its roadshow to Hanover investors, and have shed The company said it was aware of unusually high trading in its shares yesterday, which continued today and has been referred of the securities regulator.

Allied needs to convince secured investors in Hanover and United Finance that they should accept a vast amount of its stock instead of seeking a receivership.

“There are no winners in this, only losers,” said Alan Moore, who helps manage $350 million. “I actually think receivership would be a better route.”He said to take Allied shares you would have to hold onto them for the long term. “If you’re 85 what good is that?”

Auckland International Airport climbed 2.2% to $1.90 after saying earnings would be at the top end of its forecast range, helped by stronger than expected passenger numbers.

Full-year profit will be at the high end of its $93 million-to-$100 million range.Air New Zealand, the national airline whose busiest routes run out of Auckland, gained 2.5% to $1.21.

Ryman Healthcare slipped 0.5% to $2.07 after the rest-home operator said second-half earnings will about match the first half. ‘Realised’ earnings climbed 12% to $29 million in the first half. The shares have surged about 50% this year.

Team Talk rose 1.3% to $2.30. The company’s mobile radio business has few direct competitors, solid earnings and strong cash generation, brokerage McDouall Stuart said, according to the ShareChat website. The only rival of scale is Kordia, which has achieved only limited penetration, the report said.

Businesswire.co.nz

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