MARKET CLOSE: NZX 50 edges higher; Pike River surges, ANZ Bank gains

Tuesday 19th May 2009

Shares rose, with the NZX 50 Index recording it second gain in seven sessions. Pike River Coal led gainers after completing temporary repairs to ventilation in its mine. Australia & New Zealand Banking Group joined a global rally in banks as interbank borrowing costs fell.

The NZX 50 rose 12.94, or 0.5%, to 2790.80. Within the index, 34 stocks rose, eight fell and eight were unchanged. Turnover was $84 million.

Pike River (NZX: PRC ) jumped 11% to $1.14, the highest since Nov. 6. The miner put its first heavy coal cutting machine back into action after completing a temporary ventilation hole. CEO Gordon Ward said he expected to have all three mining machines cutting coal by early June.

Signs of stronger demand for coking coal have also helped lift Pike’s stock. India’s JSW Steel today said that nation’s demand for steel will accelerate this year on increased government spending on infrastructure.

ANZ Bank (NZX: ANZ ) climbed 3.4% to $19.98 as interbank borrowing costs eased and US banks increased efforts to repay government loans. Three-month Libor had its biggest decline since March 19 yesterday.

Japan’s Mitsubishi UFJ Financial Group jumped 5.6% and National Australia Bank climbed 2.2%. Bank of America led the Dow Jones Industrial Average higher yesterday in New York.

ING Property Trust (NZX: ING ) gained 1.8% to 57 cents after reporting a full-year net loss of $63.1 million, from a profit of NZ$71.7 million a year earlier, reflecting the decline in the value of its portfolio.

Relative to the market, “the trust’s diversified portfolio of good quality investments is well-positioned,” said chairman Michael Smith “The strategy to reduce the trust's debt is appropriate given the current conditions, however, it will impact distribution levels.”

Nuplex Industries (NZX: NPX ) climbed 5.3% to 40 cents after reiterating its annual earnings forecast and saying it sees signs of recovery in some markets. Annual earnings before interest, tax, depreciation and amortisation are expected to fall 29% to $87 million from $122 million in 2008. Second-half EBITDA will be “at least in line” with the first half of 2009, managing director John Hirst said in a statement. “We are seeing early signs of recovery in some markets, with a general sense of stability in the remainder,” he said.

Pyne Gould (NZX: PGC ) rose 0.5% to $2.11 after its Marac Financial Services unit announced it had entered an assurance scheme with Hyundai Motors. The move follows its announcement of a finance and insurance partnership with Suzuki NZ last week.

Tap maker Methven (NZX: MVN ) fell 3.9% to $1.25, leading decliners on the NZX 50.

APN News & Media (NZX: APN ) fell 3% to $1.60 after the Australian-based publisher of the New Zealand Herald announced plans to raise up to A$99 million through a one-for-five rights offer at A$1 apiece, a 16% discount to the last traded price on the ASX.

Contact Energy (NZX: CEN ) fell 1.3% to $5.92 after seeking a year-long delay on a resource hearing for its $1 billion Waikato wind farm project.

Businesswire.co.nz

Comments from our readers

No comments yet