MARKET CLOSE: NZ shares rise; NZOG, Farming Systems gain, Pike down

Wednesday 20th May 2009

New Zealand shares rose for a second day, with New Zealand Oil & Gas climbing as the price of crude oil topped US$60 a barrel and Lion Nathan gaining after the brewer lifted its full-year forecast.

The NZX 50 rose 10.28, or 0.4%, to 2801.08. Within the index, 21 stocks rose, 14 fell and 15 were unchanged. Turnover was $69.8 million.

NZOG (NZX: NZO ) rose 1.4% to $1.48 after crude oil for July delivery reached US$60.60 a barrel on the New York Mercantile Exchange and held above US$60 in Asian trading. New Zealand Refining (NZX: NZR ), the nation’s only refinery, rose 1.3% to $6.89.

NZ Farming Systems Uruguay (NZX: NZS ) jumped 25% to 69 cents, leading the index higher.

Telecom (NZX: TEL ). gained 1.2% to $2.62 after the biggest company on the NZX 50 said it is aiming to lift its share of the mobile market to 50% from 38% currently by winning customers from rival Vodafone with its new third-generation market.

Pike River Coal (NZX: PRC ) fell 7.9% to $1.05. The Czech Republic’s biggest supplier of coking coal, New World Resources, posted an unexpected first-quarter loss as prices fell because of weaker demand from steelmakers.

Shares were mixed across Asia. Australia’s S&P/ASX 200 edged up 0.2% to 3824.60, while Hong Kong’s Hang Seng slipped 0.4% to 17470.54 and Japan’s Nikkei 225 Index rose 0.6% to 9344.64. The Dow Jones Industrial Average dipped 0.3% yesterday after figures showed U.S. housing starts slumped to a record low.

“The economic outlook in the next six-to12 months is going to be very tough,” said Angus Gluskie, who manages about A$330 million at White Funds Management in Sydney. “Every day something is coming out that’s a surprise on the downside,” he said, citing Japanese GDP and US housing starts.

Lion Nathan (NZX: LNN ) gained 0.4% to $15.02 on the NZX and rose 0.1% to A$11.69 on the ASX after lifting its full-year earnings guidance after stronger beer sales boosted first-half profit by 6.9%.

Fletcher Building (NZX: FBU ), the nation’s biggest construction company, rose 0.3% to $6.61. The company scaled back applications under its share purchase plan, which was over-subscribed. It confirmed the shares were sold at $5.35, the same price as for its institutional placement.

Nuplex Industries (NZX: NPX ) gained 7.5% to 43 cents and Fisher & Paykel Appliances (NZX: FPA ) rose 3.2% to 64 cents.

Businesswire.co.nz

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