MARKET CLOSE: NZ shares follow global rally, led by Fletcher 19 Dec 2014
Article - BusinessDesk
MARKET CLOSE: NZ shares follow global rally, led by Fletcher
By Paul McBeth
Dec. 19 (BusinessDesk) - New Zealand shares joined in a global rally which started on Wall Street and continued into Asia, paced by firms with substantial trans-Tasman business including Fletcher Building, TrustPower and Ebos Group.
The NZX 50 index rose 9.274 points, or 0.2 percent, to 5527.75. Within the index, 20 stocks gained, 26 fell, and four were unchanged. Turnover was $189 million.
Stocks on Wall Street extended their gains as investors consider the impact of the Federal Reserve's patient stance to raising interest rates. Share markets were up across Asia, with Japan's Nikkei 225 index gaining 2.1 percent in afternoon trading, Hong Kong's Hang Seng up 1.2 percent, and Australia's S&P/ASX 200 index up 2.2 percent.
"There were some pretty strong offshore leads and you're seeing a bit of a bounce," said James Lindsay, who helps manage about $400 million in equities at Nikko Asset Management in Auckland. "New Zealand is relatively defensive, and the market has lagged the offshore leads."
Construction firm Fletcher led the benchmark index higher, gaining 2.6 percent to $8.15 as firms with large Australian exposure rose. TrustPower, which has hydro energy interests across the Tasman, gained 2.2 percent to $7.80 and Ebos climbed 1.8 percent to $9.99. Dual-listed Australian banks gained, with Australia and New Zealand Banking Group gaining 1.9 percent to $33.18 and Westpac Banking Corp up 1.6 percent to $34.
Air New Zealand rose to $2.61 as investors continued to view falling oil prices as likely to drive cheaper jet fuel costs for the airline. Auckland International Airport rose 1.2 percent to $4.37.
SkyCity Entertainment Group fell 2.8 percent to $3.83 after the hotel and casino operator said the cost of building an international convention centre in downtown Auckland would be about a fifth more than expected, and that it was in talks with the government to find a way to bridge the funding gap.
Chorus fell 0.4 percent to $2.68 after the Commerce Commission said it expected it will take longer to reach a final determination on setting the regulated price for the network operator's copper lines, and that its initial view on backdating its decision was to Dec. 1, 2014. Spark New Zealand, Chorus's biggest customer, fell 0.6 percent to $3.09.
Steel & Tube Holdings declined 1 percent to $2.87 after an interim judgment found against the steel products maker over a disputed lease contract worth $1.75 million. The Lower Hutt-based company is considering its options.
Shares of Trade Me gained 1.1 percent to $3.56 after the online auction site said it hired former Xero executive Stuart McLean, who will lead its general items marketplace. Xero disestablished McLean's position as chief revenue officer. Its shares declined 0.3 percent to $15.45.
Shares of OceanaGold Corp fell 0.5 percent to $2.20 in its final day in the benchmark index. Metro Performance Glass rose 0.5 percent to $1.90 ahead of its inclusion in the NZX 50 from Monday.
Guinness Peat Group was the biggest decliner on the day, down 4.6 percent to 42 cents.
New Zealand Oil and Gas fell 4 percent to 60 cents after saying its stake in an Indonesian permit may be diluted by a joint study agreement over the area.
Shares of Finzsoft Solutions sank 20 percent to $4, adding to yesterday's 15 percent decline when majority owner and chief executive Andrew Holliday said he intends to make a takeover bid at $3 per share for the financial software developer in partnership with Silverlake Axis, the Bermuda-based IT company.
Acurity Health Group was unchanged at $4.976 after the Commerce Commission approved a revised takeover bid by its three biggest shareholders.
(BusinessDesk)
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