MARKET CLOSE: NZ shares edge up; retailers gain

MARKET CLOSE: NZ shares edge up; Kathmandu, Pumpkin Patch gain

July 5 (BusinessDesk) - New Zealand shares rose, led by retailers with stores in Australia such as Kathmandu and Pumpkin Patch after figures this week showed stronger-than-expected consumer spending across the Tasman.

The NZX 50 Index rose 1.08 points, or 0.03 percent, to 3484.20. Within the index, 20 stocks rose, 18 fell and 12 were unchanged. Turnover was about $99.6 million.

Kathmandu, the outdoor equipment chain, rose 4.3 percent to $1.46 after government figures in Australia yesterday showed retail sales rose 0.5 percent in May, more than twice the expected pace. The shares have climbed from a record low $1.27 on June 29. Pumpkin Patch, the children’s clothing retailer, rose 1.2 percent to 88 cents.

"All those figures aren't translating into earnings but it could have some follow through to Kathmandu," said Grant Williamson, director at Hamilton Hindin Greene. "We are seeing some bargain hunting in these stocks which have been aggressively sold down in recent times."

Fisher & Paykel Healthcare rose 1.5 percent to $2.05, having touched a nine-year low last month. Fisher & Paykel Appliances rose 0.9 percent to 56 cents.

The NZX gained 2.2 percent to $1.37. The stock exchange regulator today announced it will include a requirement for listed companies to disclose their gender diversity as part of the annual reports starting on Dec. 31, subject to Financial Markets Authority approval.

OceanaGold, the operator of the Macraes gold field, fell 2.3 percent to $2.53.

"The price of gold is volatile at the moment so a lot of these stocks have been following the price of gold," Williamson said.

Rubicon, the forestry science and wood products investor, surged 17 percent to 28 cents after announcing it has completed its $21 million one-for-three rights issue, fully subscribed, with all shares taken up by existing shareholders at a slight premium to the issue price.

Sky Network Television, the pay-TV company controlled by News Corp, rose 2.1 percent to $4.93. Nuplex Industries, the specialty chemicals company, rose 0.8 percent to $2.62.

Telecom, the biggest company on the exchange, fell 0.2 percent to $2.49. Fletcher Building, the biggest construction company on the NZX 50, fell 0.6 percent to $6.22.

Pyne Gould was unchanged at 29 cents. The company, which is being investigated by the markets regulator over related-party loans, says no decision has been made on whether to relocate to the ASX and divest its Perpetual Trust.

The wealth manager halted trading in the 23 percent of its stock that isn't owned by managing director George Kerr and US hedge fund Baker Street Capital after Fairfax Media reported the plans. Pyne Gould said the report was based on a leaked email.

DNZ Property Fund rose 0.7 percent to $1.47 after saying leasing transactions in the March quarter have increased its contracted annual rentals by 0.6 percent and lifted its weighted average lease term (WALT) to 5.6 years at June 30 from 5.4 years three months earlier.

(BusinessDesk)

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