MARKET CLOSE: NZ shares gain as Contact, ‘regulated’ companies recover
April 22 (BusinessDesk) – New Zealand shares rose as companies in regulated markets, such as Contact Energy and Chorus, recovered from last week’s selloff and among small caps, Ecoya soared after beating its earnings guidance.
The NZX 50 Index rose 39.156 points, or 0.9 percent, to 4483.65, a record high close. Within the index, 35 stocks rose, 10 fell and five were unchanged. Turnover was $139 million.
Contact, the biggest power company on the exchange, rose 1.5 percent to $5.39. The shares dropped to the lowest in more than a month last week after the Labour and Greens parties unveiled plans to regulate the power market if they win power. Chorus, the telecommunications network operator, rose 3.4 percent to $2.73.
“We’ve seen a recovery in those asset classes,” said James Lee, head of institutional equities at First NZ Capital. Generally, “the market is still seeing an inflow both of retail and foreign institutions. As long as interest rates stay down here, the market will be supported.”
TrustPower edged up 0.3 percent to $x7.20 and Infratil, its 50.7 percent owner, gained 1.7 percent to $2.34.
The government today said it would amend the offer documents for the selldown of MightyRiverPower to reference the risks posed should the opposition parties win power and enact their plan.
Ecoya jumped 17 percent to 95 cents after the cosmetics and scented candle marketer said earnings before interest, tax, depreciation and amortisation was more than $1.1 million in the 12 months ended March 31, with sales rising 18 percent to $26.6 million. It sees more growth in 2014 with revenue forecast to beat $30 million and ebitda to exceed $2 million.
Fletcher Building, the biggest company on the NZX 50, rose 0.6 percent to $8.46. Telecom gained 1.6 percent to $2.57.
Warehouse Group, the biggest retailer on the bourse, gained 2.6 percent to $3.90. Jeweller Michael Hill International rose 2.1 percent to $1.46. Among other retailers, Kathmandu fell 0.4 percent to $2.38 and Hallenstein Glasson Holdings fell 1.1 percent to $5.62.
Restaurant Brands, the fast-food operator, fell 2 percent to $2.92.
OceanaGold, operator of the Macraes gold field, rose 7.6 percent to $2.42, leading gainers, as the price of spot gold rose from its recent lows.
Diligent Board Member Services, which sells software to assist company directors, gained 3.6 percent to $6.58, a record high close.
Nuplex Industries, the specialty chemicals maker, rose 3.6 percent to $$3.20 and Fisher & Paykel Healthcare gained 2.7 percent to $2.67.