MARKET CLOSE: NZX 50 gains to 6-month high; Telecom rises

Wednesday 6th May 2009

New Zealand shares rose for a third day, pushing the NZX 50 Index to a six-month high. Telecom gained to the highest level since early October as the phone company fought an injunction from rival Vodafone that could delay the launch of its high-speed mobile network.

The NZX 50 gained 12.30, or 0.4%, to 1831.36. Within the index, 26 stocks rose, 11 fell and 13 were unchanged. Turnover was $90.7 million.

Telecom advanced 1.8% to $2.83, bringing its gain this year to 21%. The High Court at Auckland is to rule tomorrow whether Vodafone has grounds for an injunction after it claimed Telecom’s net network was causing inference on its customers’ calls.

Fisher & Paykel Appliances climbed 8.8% to 61 cents, trimming its slide this year to 59%. The manufacturer that gets 25% of revenue in U.S. dollars has been buoyed by signs the U.S. housing slump is abating. Its stock has gained 16% in the past week. Whirlpool Corp., its technology partner and the world’s biggest appliance maker, which has advanced 13% in a week.

Fletcher Building fell 1.7% to $6.81 after announcing today that both its $100 million share purchase plan and $20 million top up offer had been oversubscribed.

Tourism Holdings sank 1.9% to 51 cents after the company laid off 64 workers at its Ci Munro campervans unit in Hamilton, amid dwindling demand. “The changes, whilst difficult, place the business on a much more secure footing,” said chief executive Grant Webster in a statement. “Whilst nobody can predict the future we are here to support this business and we will do so with a positive outlook.”

Michael Hill International, the jeweler that counts Australia as its largest market, climbed 3.4% to 61 cents after government figures across the Tasman showed retail sales rose 2.2% in March from February, more than four times the gain economists had expected. Children’s clothing chain Pumpkin Patch rose 3.2% to $1.29.

Westpac Banking’s ASX listed shares climbed 2.4% to A$19.96 after Australia’s biggest bank by market value posted a 6% decline in cash earnings on charges for bad debts. “While impairments have significantly increased over the period, we have also maintained a conservative approach to provisioning,” chief executive Gail Kelly said.

Rakon, the maker of navigation system components, rose 6% to $1.59, PGG Wrightson gained 5.7% to $1.48, Tower climbed 5% to $1.47 and Freightways rose about 4% to $3.14.

Businesswire.co.nz

Comments from our readers

No comments yet