MARKET CLOSE: NZ shares rise, Vector leads gains, AMP falls

MARKET CLOSE: NZ shares rise, Vector leads gainers, AMP falls

By Jason Krupp

Jan. 10 (BusinessDesk) - New Zealand shares rose with Vector Ltd. pacing gainers on the exchange, while Australian wealth manager AMP Ltd. fell amid volatile trading.

The NZX 50 Index rose 6.13 points, or 0.2%, to 3324.07. Within the index 23 shares rose, 13 fell and 14 were unchanged. Turnover was $31.7 million.

Vector, the Auckland electricity and gas distribution company, rose 3% to $2.38. The company was one of the top performers on the index last year, with shares gaining 18.1% in the past 12 months.

Property for Industry Ltd., the commercial property and industrial property investor, rose 2.7% to $1.16, while sister-company AMP NZ Office Ltd, the prime office space investor, rose 6.3% to 78 cents.

Pyne Gould Corp., whose Marac Finance unit recently merged with the Southern Cross and Canterbury building societies to form Building Society Holdings Ltd., rose 2.6% to 39 cents after the new entity said it was said it is interested in buying PGG Wrightson Finance's rural lending business.

Parent company PGG Wrightson Ltd. is currently facing a takeover offer from Chinese agricultural and seeds researcher Agria which is looking to boost its holdings to just over half, with an offer of 60 cents a share. Pyne Gould, which holds an 18.3% stake in the rural services company, has agreed to sell its holdings to Agria. Wrightson shares were unchanged at 54 cents.

Restaurant Brands NZ Ltd., the fast food franchise operator, rose 2.3% to $2.68 after data from credit card and eftpos transactions processor Paymark showed kiwis splashed on eating takeaways this December, which rose 24% compared to the same period last year.

The overall number of card transactions for the month was 3.9% higher than the same month in 2009, and ahead of the 2.8% growth rate averaged across the first 10 months of the year. However the numbers were still softer transactions processed during November.

Forsyth Barr broker David Price said despite the shot in the arm for retailers the overall mood remains "subdued" and he expects New Zealand Institute of Economic Research's Quarterly Survey of Business Opinion to remain in line with this when it is released tomorrow.

Shares in Air New Zealand rose 0.7% to $1.53 in trading today after Virgin Blue's local financial statements showed the airline lost $19.8 million on domestic flights in the 12 months ended June 30.

Virgin's Pacific Blue pulled the pin on its New Zealand operation in October, saying it couldn't sustain losses in the competitive environment. Virgin has since entered into a joint trans-Tasman venture with Air NZ.

Fletcher Building Ltd., New Zealand's biggest listed company, was unchanged at$7.78 after a decline in its average share price over the last month forced the construction company to raise the cash component of its cash-and-share offer for Australia's Crane Group in order to maintain its offer of $A9.35 per Crane share.

The hostile bid, which now consists of one Fletcher share and A$3.47 in cash, was rejected by Crane's board, which labeled it "inadequate" and opportunistic.

AMP, the Australian wealth manager, fell 2.6% to $6.77, while banking stocks traded lower with Westpac Banking Corp., the Australian lender, falling 2.3% to $28.80, and Australia New Zealand Banking Group, the country's biggest bank, falling 1.1% to $29.76. That came after American financial stocks were hit by a potential legal precedent set by the Massachusetts Supreme Court. The court ruled Wells Fargo & Co. and US Bancorp each made an invalid foreclosure in the so-called subprime market.

Skellerup Holdings, the rubber goods and milking supplies company, fell 2.5% to $1.16. The company was rated as New Zealand's top performing listed company last year, with shares gaining more that 130% over the past 12 months.

(BusinessDesk)

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