MARKET CLOSE NZ shares rise to 2 1/2 month high on stimulus hopes
By Hannah Lynch
July 31 (BusinessDesk) - New Zealand’s NZX 50 Index rose to the highest in more than two months, led by Telecom, Ryman
Healthcare and Fletcher Building on optimism that central bank meetings in Europe and America will help stimulate global
growth.
The NZX 50 index rose 26.12 points or 0.74 percent to 3545.01, the highest level since May 14. Within the index, 27
stocks gained, 11 fell and 12 were unchanged. Turnover was $108 million.
"Our companies are performing pretty well and New Zealand isn't a bad place to invest when you look at the global
scene," said Michael Milne, investment adviser at Craigs Investment Partners. "We are all optimistic heading into
earnings season that our companies won't do too badly."
Telecom, the telecommunications company, advanced 1.9 percent to $2.66.
Ryman Healthcare gained 1.7 percent to $3.66. The retirement village builder and operator announced its quarter trading
is ahead of last year and it plans to build its 28th retirement village unit in Petone in the Hutt Valley. The stock has
gained 31 percent so far this year.
Shares in rival Summerset Group, who listed in November, rose 2.7 percent to an all-time high of $1.92. The stock has
gained 38 percent to far this year.
"People want exposer to the sector," Milne said. "Ryman and Summerset are the way to it - they are stellar performers."
Local stocks also got a boost after figures showed Australia’s economy isn’t as dire as feared. Australian approvals to
build new homes in June fell 2.5 percent, less than the 14.2 percent slide forecasted in a Reuters' survey.
Fletcher Building, the biggest construction company on the bourse, rose 1.5 percent to $6.11 "on the back of the
Australian data," Milne said
Shares in New Zealand Oil & Gas gained 1.2 percent to 81 cents. Investors' ignoring news the company has barely a month to find partners to help
meet the cost of exploratory drilling in its deep-sea Barque prospect, off the Canterbury coast.
The gain was led by Kathmandu, the outdoor clothing retailer, up 5.3 percent to $1.59.
NZX fell 0.85 percent to $1.17. The stock exchange operator yesterday flagged smaller first half earnings, signaling
expenses of between $2 million and $3 million after a CEO transition and the Clear grain exchange litigation.
PGG Wrightson was the biggest decliner on the NZX50, down 3.13 percent to 31 cents.
(BusinessDesk)