MARKET CLOSE: NZX 50 at record on unchanged Fed, growth
MARKET CLOSE: NZX 50 at record on unchanged Fed, growth; Fletcher gains
Sept. 19 (BusinessDesk) – New Zealand shares rose, pushing the NZX 50 Index to a new record as the Federal Reserve kept its stimulus unchanged and the local economy grew more than expected. Fletcher Building rose to a five-year high.
The NZX 50 rose 49.205 points, or 1 percent, to 4753.035. Within the index, 37 stocks rose, six rose and seven were unchanged. Turnover was about $135 million.
Stocks rallied worldwide, Wall Street benchmarks hit new records and growth-linked currencies such as the kiwi surged after Fed chairman Ben Bernanke surprised markets by saying the US central bank wouldn’t unwind its US$85 billion monthly asset purchases until the US showed signs of life. New Zealand’s economy grew 0.2 percent in the second quarter, beating estimates.
Fletcher, the biggest company on the NZX 50, rose 2 percent to $9.83. Auckland International Airport rose 2.3 percent to $3.365 and Mainfreight climbed 4.5 percent to $11.50. Telecom gained 1.3 percent to $2.305.
“The New Zealand economy is doing pretty well on a relative basis,” said James Lindsay, portfolio manager at Tyndall Investment Management. The Fed’s decision to stand pat means “risk assets are supported and yield assets are supported.”
Fisher & Paykel Healthcare, which gets more than 50 percent of its revenue in US dollars, fell 1.4 percent to $3.63 as the kiwi dollar jumped.
OceanaGold, which manages the Macraes gold field, jumped 13 percent to $2.17 as spot gold climbed following the Fed’s statement.
Nuplex Industries rose 3.3 percent to $3.46 after the company said in a strategic update presentation posted to the NZX that it is targeting sales from its Asian operations of $500 million a year.
Chorus snapped its recent slide to climb 1.8 percent to $2.88.
Warehouse Group led gains among retailers, rising 2.9 percent to $3.86. Restaurant Brands New Zealand, which posted a 6.2 percent gain in second-quarter sales yesterday, rose 2.5 percent to $2.87.
Hallenstein Glasson Holdings rose 2.4 percent to $5.12 and Michael Hill International rose 1.4 percent to $1.49.
Abano Healthcare fell 0.7 percent to $6.70 amid news director and major shareholder Peter Hutson resigned from the board at the urging of his fellow directors. Hutson is involved in a takeover tilt, which seeks to acquire Abano’s dental business and sell its audiology unit to Hutson for a nominal sum.
Bathurst Resources jumped 6.9 percent of 18.7 cents after the miner won a Supreme Court ruling which takes it another step closer to starting its proposed Escarpment project on the West Coast’s Denniston Plateau. The country’s top court turned down an appeal by environmental groups seeking to have the climate change effects of burning coal by the end users taken into account in the consenting process.