MARKET CLOSE: NZ Shares rise, led by OceanaGold, FPH
MARKET CLOSE: NZ Shares rise, led by OceanaGold, F&P Healthcare; Energy Mad soars
By Suze Metherell
Jan. 22 (BusinessDesk) - New Zealand shares rose for a second day to a two-month high, led by OceanaGold, which exceeded its gold production forecasts, and paced by Fisher & Paykel Healthcare as it reached seven-year highs.
The NZX50 advanced 28.668 points or about 0.6 percent to 4950.339. Within the index 26 stock rose, 15 fell and nine were unchanged. Turnover was $107.9 million.
Melbourne-based mining group OceanaGold led the index higher, with the shares up 7.7 percent to $2.11 after it said it beat its gold production forecasts for 2013.
“When there is any announcement out of a gold company about production rates you do get a knee jerk reaction from the market,” said Mark Warminger, portfolio manager at Milford Asset Management. “That will settle down in the following days and months. Ultimately it depends on the price of gold.”
F&P Healthcare shares rose 3.9 percent to $4.12, the highest the respiratory and sleep apnoea mask makers have been in nearly seven years. Retirement village operators Ryman Healthcare, Summerset Group and Metlifecare joined the health sector rally. Ryman was up 0.3 percent to $8.17, Summerset also lifted 0.3 percent to $3.65 and Metlifecare gained 0.2 percent to $4.25
“Healthcare is a safe place to be, in case of any little hiccup in the market, health is seen as safe stock,” Warminger said.
Stocks with Australian interests rose as the kiwi dollar weakened against the Australian dollar. Skycity Entertainment Group, which has casinos in Darwin and Adelaide, advanced 1.8 percent to $3.89. New Zealand’s biggest listed company, Fletcher Building, rose 1.1 percent to $9.16, while outdoor clothing retailer Kathmandu was up 3 percent to $3.45.
“We had inflation data out of Australia, which was higher than expected. That’s given wind in the sails to companies with trans-Tasman exposure, such as SkyCity Entertainment, Fletcher and Kathmandu,” Warminger said The weaker kiwi was also bringing increased international interest to the NZX, he said.
Telecom shares rose 0.4 percent to $5.80 after it won the final lot of 4G radio spectrum in the government’s auction, and Auckland International Airport was unchanged at $3.67 after China Southern Airlines said it will keep its 10 weekly flights on the Guangzhou to Auckland route until the end of October.
Shares in energy efficient light bulb maker and marketer Energy Mad doubled to an intraday two-year high price of 68 cents, after it said its cost saving bulbs will be sold in the US market through online retailer Amazon. The stock closed at 60 cents, up 76 percent.
Trade Me Group led the decliners, dropping 1.7 percent to $4.13.Diligent Board Member Services fell 1.5 percent to $4.68, and New Zealand Oil and Gas slipped 1.3 percent to 79 cents.