MARKET CLOSE: NZ shares rose on oil relief; Air NZ gains   18 Dec 2014

By Suze Metherell

Dec. 18 (BusinessDesk) - New Zealand shares rose, led by OceanaGold Corp and Air New Zealand following a global rally as a rebound in oil prices and positive statements from the US Federal Reserve gave investors hope for the international economy. Arvida Group was flat in its NZX debut.

The NZX 50 Index rose 21.891 points, or 0.4 percent, to 5518.476. Within the index, 31 stocks rose, 10 fell and nine were unchanged. Turnover was $133 million.

This morning, US Federal Reserve chair Janet Yellen indicated higher US interest rates are coming, and was more upbeat about the state of the world's biggest economy. Meanwhile, overnight Wall Street rose as oil, which has halved in value since the start of the year, advanced 5 percent stoking optimism the plunge in prices has found a floor. Markets across Asia climbed. Japan's Nikkei 225 Index jumped 2.6 percent in afternoon trading, Hong Kong's Hang Seng Index advanced 1 percent and Australia's S&P/ASX 200 increased 1.1 percent.

The triple-listed gold miner OceanaGold led the benchmark index higher advancing 5.7 percent to $2.21. Air NZ, the national carrier, climbed 2.8 percent to $2.58. Diligent Board Member Services, the governance app developer, gained 2.1 percent to $4.91.

"We're very much following the offshore markets," said Grant Williamson, director at Hamilton Hindin Greene. "It was very much on oil prices and some other positive announcements, including the Fed, all in all just flowed into a more healthy market."

Outside the benchmark index, Arvida was unchanged at 95 cents in its debut on the NZX which saw the retirement village operator raise $80 million in capital. The company says its higher proportion of care beds makes it a different investment offer from its already listed rivals, Summerset Group Holdings, Metlifecare and Ryman Healthcare, delivering a stronger cash flows and less volatility in earnings than the retirement village side provides.

"This one is quite a bit different to the others. It is going to have a reasonable dividend yield and is not so much in expansion mode like the others," Williamson said. "It is going to have to prove itself because it is a new company and it's the amalgamation of quite a few villages together."

Metlifecare advanced 3.2 percent to $4.51. Summerset was unchanged at $2.84. Ryman fell 0.6 percent to $8.20.

NZX rose 0.9 percent to $1.14. The stock market operator has had 16 initial public offers on its capital markets this year.

Spark New Zealand, formerly Telecom Corp, fell 0.2 percent to $3.11. The telecommunications provider announced it will spend US$32 million in US$70 million project with Vodafone New Zealand and Telstra to build a trans-Tasman submarine broadband cable. Separately, the company, which is diversifying into content, data and cloud-services in a bid to grow earnings, announced its online video on-demand service, Lightbox, had entered a joint venture with Coliseum Sports Media New Zealand as it looks to gain a foothold in the "crowded online TV marketplace".

Sky Network Television, the dominant pay TV provider, rose 0.3 percent to $5.82. The company is launching an online video service of its own to keep viewers subscribed.

Outside the benchmark index, Finzsoft Solutions dropped 15 percent to $5 after its managing director Andrew Holliday said he intends to make a discounted takeover bid at $3 per share for the financial software developer in partnership with Silverlake Axis, the Bermuda-based IT company.

Tourism Holdings rose 1.1 percent to $1.77 after the biggest campervan rental company in Australia and New Zealand lifted its forecast for first-half and annual earnings for a second time on favourable trading conditions.

Livestock Improvement Corp, which provides testing and artificial breeding services to the dairy industry, was unchanged at $6.10 after it said it has purchased a majority interest in its Brazilian genetics distributor, NZ Brasil Genetics Producao Animal for an undisclosed sum.

(BusinessDesk)

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