MARKET CLOSE: NZ shares mixed; Wrightson gains as Fonterra units snapped up
Nov. 27 (BusinessDesk) - New Zealand shares were mixed. PGG Wrightson rose to the highest in more than a month after the
sale of Fonterra units underlined the appeal of the rural sector, while Kiwi Income Property Trust fell after shedding
its dividend.
The NZX 50 Index fell 2.41 points, or 0.1 percent, to 4009.60, holding above 4000 for a third session. Within the index,
20 stocks rose, 18 fell and 12 were unchanged. Turnover was $115 million, with just less than a fifth of that made up of
trading in Fletcher Building shares.
Fletcher, the biggest company on the bourse, edged up 0.1 percent to $7.98, having reached $8.01 in intraday trading.
“We’re not getting a lot of people taking profits,” said Greg Easton, an adviser at Craigs Investment Partners. “There’s
still buying interest and still a hunt for yield.”
Wrightson, the nation’s largest rural services company, rose 2.9 percent to 36 cents, a level it hasn’t reached since
Oct. 19. Fonterra priced its units at $5.50 apiece, the top end of the range proposed in a bookbuild, with strong global
demand ensuring 42 percent of the fund has been sold to overseas investors. The units are entitled to the dividends on
Fonterra’s shares.
Among smaller stocks, Renaissance, the Apple retailer and design school operator, soared 14 percent to 16 cents after
the company hired Grant Samuel & Associates for a strategic review, saying the current share price of the company is “substantially below the value of
its component divisions,” making the company vulnerable to a takeover.
Shareholders of New Talisman Gold Mines applied for only 52 percent of shares on offer under its renounceable rights
issue, leaving the underwriter to make up the balance.
New Talisman, the gold mining company formerly known as Heritage Gold NZ, was unchanged at 1.1 cents after shareholders
subscribed for only about half the shares in its rights offer. The capital raising was underwritten.
Contact Energy, the biggest power company on the NZX 50, rose 2.3 percent to $5.27. Steel & Tube Holdings, which sells steel building materials, gained 1.4 percent to $2.26.
Kiwi Income Property Trust dropped 2 percent to $1.15 after going ex-dividend, meaning investors are no longer entitled
to its 3.3 cent interim dividend.
NZ Refining, which operates the nation’s only oil refinery, fell 2.5 percent to $2.71. Telecom, the biggest phone
company on the NZX 50, fell 0.9 percent to $2.33.
Fisher & Paykel Healthcare rose 1.2 percent to $2.53 and Guinness Peat Group declined 0.9 percent to 59 cents.
(BusinessDesk)