MARKET CLOSE: NZ stocks gain in light trade, ANZ Bank climbs

Monday 26th January 2009

New Zealand shares rose, led by Australia & New Zealand Banking Group, after financials rebounded in the U.S. on Friday. Trading was subdued, with Auckland celebrating its anniversary day and a holiday closing Australian markets.

The NZX 50 Index rose 0.66, or 0.02%, to 2705.746. Within the index, 16 stocks rose, 14 fell and 20 were unchanged. Turnover was NZ$41 million.

ANZ Bank climbed 6.4% to NZ$15.91, climbing back from an 8.5% tumble on Friday as global bank stocks fell. Citigroup rose 12% to US$3.47 and Bank of America climbed 9% to US$6.24 on Friday, helping lift the Standard & Poor's 500 Index higher.
Australian insurer AMP Ltd. rose 2.1% to NZ$6.20.

NZX Ltd. was the biggest local gainer, rising 2.9% to NZ$4.99 though just 400 of its 24.6 million shares changed hands. Kiwi Income Property Trust rose 1.9% to NZ$1.05.

Jewellery chain Michael Hill International declined 1.9% to 52 cents, the lowest this year. Central bank figures released today showed New Zealanders trimmed their credit card balances last month, a sign that retail spending in the peak month of December may have been subdued.

The amount owed on credit cards fell 0.8%, seasonally adjusted, to NZ$5.23 billion last month, according to credit card statistics posted on the Reserve Bank's website today.

Clothing chain Hallenstein Glasson Holdings fell 0.9% to NZ$2.18. New Zealand Oil & Gas rose 1.6% to NZ$1.26 after crude oil led a 3% gain in the Reuters/Jeffries CRB index on Friday.

Investors are awaiting the central bank's monetary policy statement on Thursday, amid expectations Governor Alan Bollard will slash the official cash rate by 100 basis points to 4% and flag the potential for further cuts. Meantime, Fonterra Cooperative Group is this week scheduled to announce its milk payment plans for farmers, with some economists tipping a reduced payout as global dairy product prices slide.

"A large cut is expected by the RBNZ and the market is now starting to test a sub-3% terminal OCR," economists at ANZ Bank said in a report today. A lower dairy payout "is another green light to cut rates from a growth and inflation perspective."

Nuplex Industries fell 3.4% to NZ$2.85, leading declining stocks on the NZX 50 today. The resins manufacturer has dropped almost 45% in the past three months. Fisher & Paykel Appliances fell 3.1% to NZ$1.26.

Fisher & Paykel Healthcare, which gets 80% of its revenue in U.S. dollars, rose 1.3% to NZ$3.18.

In Tokyo, the Nikkei 225 Index fell 0.2% to 7732.71 in afternoon trading. Kyocera jumped 5.5% after Barron's reported that the electronics firm is well placed to benefit from any economic recovery.

Komatsu, which makes earth-moving equipment, dropped 4.5% after cutting its annual profit forecast because of the global economic downturn.

(Businesswire.co.nz)

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