MARKET CLOSE: NZ shares gain; Fletcher, Hallenstein rise

MARKET CLOSE: NZ shares gain; Fletcher, Hallenstein rise, Cavalier falls

March 26 (BusinessDesk) – New Zealand shares rose amid optimism the economy will pick up pace this year, even as China changes down a gear. Fletcher Building and Hallenstein Glasson Holdings paced the advance.

The NZX 50 Index rose 22.61 points, or 0.7 percent, to 3471.91. Within the index, 29 stocks rose, nine fell and 12 were unchanged. Turnover was $145 million.

Fletcher, the biggest company on the bourse by market value today, rose 1 percent to $6.87, bringing its gain this year to 11 percent. The company posted first-half earnings that missed estimates though investors are awaiting the benefits that will flow from the rebuild of earthquake damage in Christchurch.

"We have been focused on local economic performance rather than what is going on globally and that is reflected in how our market has performed," said Bryon Burke, head dealer at Craigs Investment Partners. "Fletcher Building is once again leading the index movement."

Hallenstein, the clothing chain, rose 2.9 percent to $3.97, climbing back from a two-week low and leading gains among retailers.

Warehouse Group, the biggest retailer on the NZX 50, rose 0.4 percent to $2.75. Pumpkin Patch, the children’s clothing retailer, rose 2 percent to $1.

"The retail angle continues with lower interest rates," Burke said. “Retail generally is good yield-paying securities rather than growth."

OceanaGold, the operator of the Macraes gold field, rose 4.3 percent to $3.14, after giving a progress report on construction at the Didipio Project located in northern Luzon, the Philippines.

Heartland New Zealand, the finance company, rose 6.7 percent to 48 cents.

Rakon, which makes components for navigation systems, rose 4.1 percent to 51 cents.

Freightways, the courier and logistics firm, gained 2.1 percent to $3.96.

Ebos Group, the medical and pet supplies company, was unchanged at $7.35 after Masthead, the investment vehicle of the Stewart family of Christchurch, disclosed that it has agreed to sell its 10.2 percent holding for $7 a share, or about $37.2 million.

The private, off-market placement was through brokerage First NZ Capital, according to a statement from Masthead. It didn’t identify the buyers, saying only that it was to “various purchasers”. Settlement of the transaction will be on March 29, at which time Masthead’s Mark Stewart will resign from the board, it said.

Cavalier, the carpet maker, fell 2.4 percent to $2.07. Chorus, the network company spun off from Telecom, climbed 2 percent to $3.54. Telecom rose 1.1 percent to $2.395.

(BusinessDesk)

© Scoop Media