MARKET CLOSE: NZ shares gain; Wrightson leads, Cynotech soars

Nov. 16 (BusinessWire) – New Zealand shares rose, joining gains across Asia as Japan posted faster-than-expected economic growth. Cynotech Holdings surged on the prospects of a takeover offer from chairman Allan Hawkins.

The NZX 50 Index rose 15.82, or 0.5%, to 3173.96. Within the index, 22 stocks rose, 16 fell and 12 were unchanged. Turnover was $107 million.

PGG Wrightson gained 3.2% to 65 cents and Sky City Entertainment Group rose 3% to $3.45.

Japanese Cabinet Office figures showed the world’s second-largest economy grew at an annual clip of 4.8% in the third quarter, beating estimates with the fastest expansion in more than two years on rising domestic demand. Japan’s GDP report follows data showing Europe has emerged from recession while industrial production is expanding in China. At the same time, APEC leaders at the weekend pledged to maintain stimulus efforts until recovery is certain.

Japan’s Nikkei 225 reversed an earlier drop to be 0.1% higher. Hong Kong’s Hang Seng rose 1.5% and Australia’s S&P/ASX 200 climbed 0.6%.

“Sharply better-than-expected Japanese GDP has buoyed the region,” said Ben Potter, research analyst at IG Markets. Gains in metals such as gold and copper also helped lift stocks, he said.

Cynotech, the diversified group with assets ranging from loan books to ice-cream cones, soared 32% to 14 cents after former 1980s high-flier Allan Hawkins said he would make a takeover bid through his private investment company, Cynotech Securities. The offer is expected around Dec. 10.

Pan Pacific Petroleum climbed 1.9% to 55 cents after crude oil gained from its lowest level in a month, stoked by optimism recovery global economic growth will spur demand for fuel.

New York crude for December delivery rose 1.2% to US$77.29 a barrel during trading in Asia’s day.

New Zealand Oil & Gas rose 0.6% to $1.70.

Warehouse Group, the biggest retailer on the NZX 50, rose 1.7% to $4.18, recovery half of Friday’s slump when chief executive Ian Morrice said revenue in September and October were lower than expected.

Air New Zealand Ltd. rose 1.6% to $1.30 after Airbus SAS said the airline would be the launch customer for its fuel-saving wingtips that are to be added to its A320 aircraft. The wingtips can cut an aircraft’s fuel consumption by 4.5%.

NZ Farming Systems Uruguay fell 2.2% to 45 cents after government figures showed measures of milk-related producer input and output prices tumbled in the third quarter.

Westpac Banking Corp. dropped 4.8% to $31.71 on the NZX, pacing a decline in lenders on the ASX.

Australia & New Zealand Banking Group fell 1.8% to $28.

Children’s clothing chain Pumpkin Patch declined 2.6% to $1.85 and Property for Industry rose 2.5% to $1.23.

(BusinessWire)