MARKET CLOSE: NZ shares rise, paced by Fletcher

MARKET CLOSE: NZ shares rise; Fletcher gains with Australian home sales

May 29 (BusinessDesk) – New Zealand shares rose, paced by Fletcher Building, after figures showed new home sales jumped in Australia, its second-largest market. Westpac Banking Corp and AMP were among stocks linked to the Australian market that gained as the S&P/ASX 200 Index rose.

The NZX 50 Index rose 16.03 points, or 0.5 percent, to 3478.29. Within the index, 16 stocks rose, 19 fell and 15 were unchanged. Turnover was $92.7 million.

Fletcher, the nation’s biggest construction company, rose 1.8 percent to $6.25 after Australian Housing Industry Association figures showed new home sales climbed 6.9 percent in April, rebounding from a month-earlier decline and stoking optimism the housing mar ket is on the mend.

"Fletcher Building is showing signs of recovery on the back of better data out of Australia," said Rickey Ward, domestic equities manager at Tyndall Investment Management. “Anything that is dual listed is getting support, particularly the banks."

Westpac gained 1.5 percent to $26.60 on the NZX and Australia & New Zealand Banking Group rose 2.2 percent to $27.10. AMP gained 1.6 percent to $5.05. In Sydney, the S&P/ASX 200 was up 1 percent in afternoon trading.

Fisher & Paykel Appliances was the biggest gainer on the benchmark index, rising 3.9 percent to 54 cents. Vector, the gas and electricity lines business, rose 2.3 percent to $2.73.

Skellerup rose 2.1 percent to $1.45 and Freightways climbed 1.3 percent to $3.90.

Telecom, the biggest company on the exchange, rose 1.6 percent to $2.58.

Rakon led declining stocks, falling 4.1 percent to 47 cents. Cavalier, the carpet and wool scouring company, fell 1.3 percent to $1.50.

Infratil fell about 1 percent to $2.08 and jeweller Michael Hill International fell 1 percent to $1.02.

Guinness Peat Group, which is winding up its investment portfolio, fell 1 percent to 48 cents. Trade Me Group, the auction site spun off by Fairfax Media, fell 1 percent to $3.91.

(BusinessDesk)

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