MARKET CLOSE: NZ stocks extend gains; FPA leads

MARKET CLOSE: NZ stocks extend gains; F&P Appliances leads advance

Nov. 3 (BusinessDesk) - New Zealand stocks extended their gains, with investor sentiment across Asia buoyant ahead of an announcement by the U.S. Federal Reserve on the long-awaited second round of quantitative easing. Fisher & Paykel Appliances Holdings paced gainers, while Restaurant Brands fell on profit taking.

The NZX 50 Index rose 8.3 points, or 0.3%, to 3,333.07. Within the index, 25 stocks rose, 12 fell and 13 were unchanged. Turnover was $115.3 million.

In late afternoon trade Japan’s Nikkei Index rose 0.1% to 9,159.9, Hong Kong’s Hang Seng Index rose 1.8% to 24,091.8, and Australia’s ASX 200 rose 0.55 to 4,726.9.

“If there is some quantitative easing this would be good for the kiwi dollar, which could spill over into the market,” said Karl Williscroft, a trader at Direct Broking. “We’re anticipating the Fed will announce US$500 billion in asset purchases - anything less would be a surprise.”

F&P Appliances, the whiteware maker, rose 3.3% to 62 cents, leading gains on the main board of the NZX. AMP Ltd., the Australian wealth manager, rose 2.6% to $7, and Steel & Tube Holdings, which manufactures steel products for the construction industry, rose 2.1% to $2.45.

Nuplex Industries Ltd. rose 2% to $3.53 after the industrial chemical and resin manufacturer told shareholders that profit for 2011 is likely to rise by as much as 17% provided the Australian and New Zealand dollars don’t appreciate much further and margins hold.

Net profit is anticipated to be in the region of $68 million to $75 million in the 12 months ending June 30, 2011, managing director Emery Severin said at the company’s annual meeting today.

That would top 2010’s record $64.2 million profit, which was a rebound from the previous year’s slump when the global financial crisis sapped returns.

Westpac Banking Corp. rose 1.7% to $30.50 on the ASX and rose 1% to A23.54 on the ASX, after the lender’s New Zealand unit lifted annual cash earnings 36% as it slashed its provision for bad debts, even as its interest margins shrank, eroding profitability.

Cash earnings were $322 million in the year ended Sept. 30, compared to $236 million a year earlier, the company said in a statement. That came as it cut its impairment charge 39% to $347 million in the period. Operating earnings fell 11% to $804 million as the lender’s interest rate margin fell 13 basis points.

Vital Healthcare Property Trust, the specialist investor in medical clinics, rose 1.6% to $1.26 after it said yesterday that it bought 12 private hospitals and medical centres across the Tasman for A$164.5 million.

Vital is looking to issue $150.9 million in a discounted rights issue to fund the acquisition, which will boost its portfolio by 70%.

Air New Zealand Ltd., the national carrier, rose 1.5% to $1.36 after Australia's competition watchdog asked Jetstar to provide details of its domestic and Tasman expansion plans for the next three years as it considers whether to allow the alliance between the national carrier and Virgin Blue.

Restaurant Brands NZ Ltd., the fastfood chain operator, fell 2.8% to $2.76, paced decliners on the exchange. Williscroft said it look as if investors were looking to book gains following the stocks stellar performance in recent months.

Argosy Property Trust, the property investor, fell 2.5% to 78 cents, Warehouse Group, New Zealand’s biggest retailer, fell 2.3% to $3.87, and Ebos Group, which supplies medical and scientific products to the health sector, fell 1.7% to $7.42.

Oyster Bay Marlborough Vineyards, the supplier of grapes to Delegat's Wine Estate, was unchanged at $1.85 after it said it is likely to announce proposed changes to its capital structure as early as this week after falling grape prices have left it in financial difficulty.

Oyster Bay reported a net loss of $841,000 for the year to June 30, compared to a $1.5 million net profit in the previous year.

(BusinessDesk)

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