MARKET CLOSE: NZ stocks rise; Telecom, Contact gain

MARKET CLOSE: NZ stocks rise; Telecom, Contact gain

By Jason Krupp

Dec. 6 (BusinessDesk) - New Zealand stocks rose for the second time in three sessions. Telecom Corp. and Contact Energy Ltd. paced gainers, while Kathmandu Holdings fell.

The NZX 50 Index rose 9.8 points, or 0.3 %, to 3,293.18. Within the index, 18 stocks gained, 22 declined and 10 were unchanged. Turnover was $75.9 million.

Telecom, New Zealand's biggest telephone company, rose 1.4% to $2.18 amid speculation that government will announce the winning bidders for the remaining stake of the Ultrafast Broadband initiative by the end of this week.

"People are expecting some sort of outcome with regards to the next round of discussion on the UFB initiative, so there is some anticipation around that," said Shane Solly, portfolio manager for Mint Asset Management. "I would hope they are being careful about their decision and come to solid conclusions - these are difficult and meaningful commitments by business and government."

Contact Energy Ltd., New Zealand's third biggest listed company, rose 2.3% to $6.21. Solly said the company benefitted from higher electricity spot prices as the dry summer put pressure on hydroelectricity suppliers.

SmartPay Ltd., the Eftpos services company that bought the distressed ProvencoCadmus assets, rose 7.4% to 2.9 cents after it said it will list on the Australian Stock Exchange by mid-2011 as part of its expansion across the Tasman.

Managing Director Ian Bailey said the Australian market is opening up for direct sales as a result of banking changes and the need to replace many of the 600,000 Eftpos terminals currently in use. The company also announced the resignation of chairman John Seton. He will be replaced by Sydney-based director Wayne Johnson.

Jasons Travel Media Ltd., the travel and accommodation guide publisher was unchanged at 35 cents on the NZAX, after it reported softer first-half earnings on the back of weaker advertising revenues.

Net profit for the six months ended Sept. 30 fell 1.1% to $1.2 million while revenue fell 3.5% to $8.2 million. The previous first-half result had been down some 16%.

Pyne Gould Corp., the finance company which controls the bulk of car finance market through its Marac Finance unit, was unchanged at 37 cents.

New car registrations were flat in November, with 5,869 vehicle registered compared with 5,866 in the previous month according to figures released by
Land Transport New Zealand. Used car registrations rose 12.3% to 7,811 compared with October.

Kathmandu, the outdoor clothing retailer, fell 3% to $1.62, pacing decliners on the NZX 50. Pumpkin Patch Ltd., the children's clothing retailer, fell 2.9% to $1.65, and Vector Ltd., the country's largest listed network utility company, fell 2% to $2.43.

Argosy Property Trust, the listed property investor formerly known as ING Property Trust, fell 1.4% to 72 cents, after it was forced to buy out its distressed joint venture partner in the Manawatu Business Park in Palmerston North.

No money has changed hands with Argosy assuming Valour’s debts and obligations in lieu of cash, effective Nov. 30.

Vital Healthcare Property Trust, the specialist investor in medical clinics, fell 0.9% to $1.06, as its rights declined 33% to 0.2 cents.

(BusinessDesk)

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