MARKET CLOSE: NZ shares gain, led by Cavalier
MARKET CLOSE: NZ shares gain, led by Cavalier on earnings outlook
Nov. 12 (BusinessWire) – New Zealand shares rose for the fourth day in five, led by Cavalier Corp. after the carpet and wool scouring company said it is trading ahead of budget so far this year and earnings would be in the middle of its forecast range.
The NZX 50 Index gained 10.54, or 0.3%, to 3172.08. Within the index, 22 stocks rose, 14 fell and nine were unchanged. Turnover was $84.6 million.
Cavalier climbed 3.3% to $2.53. Managing director Wayne Chung told shareholders at their annual meeting today that the company’s budget for the 2010 financial year is for profit to rise 6% to $14.5 million and that so far this year trading is about 5% ahead of budget.
OceanaGold Corp., the operator of the Macraes gold field, rose 2.8% to $1.85 as the price of gold reached a new record high. Gold for December delivery edged up as much as 0.7% to a record US$1,122.30 an ounce on the New York Mercantile Exchange. OceanaGold added to yesterday’s 5.9% jumped, having raised its estimate of reserves at Macraes by 42% this week.
Steel & Tube Holdings, which sells steel building products such as reinforcing rods, fell 4.8% to $2.95, extending its 3.4% slide yesterday, when Fletcher Building, the nation’s biggest construction and building products company, said it is yet to see any significant signs of a recovery in its markets.
Fletcher gained 1.6% to $8.08 today, advancing in line with Australian building stocks including Boral Ltd., CSR Ltd. and James Hardie Industries after data showing that economy unexpectedly stacked on jobs last month stoked optimism for economic growth.
Comvita Ltd., the health-care products manufacturer, climbed 7.8% to 9 cents, extending its 53% gain in the past six months after posting 27% sales growth and a first-half profit of $1.6 million.
"The natural health products market has escaped any significant impact of the recessionary downturn," said Comvita chief executive Brett Hewlett.
Retailers were mixed after government figures showed total retail sales volumes climbed just 0.1% in the third quarter. Some 14 of the 24 retail industries recorded increased sales values in the September quarter, led by a 1.1% rise in supermarket and grocery stores, a 5.1% increase in appliance retailing and a 1.9% gain for motor vehicle retailing. Department store sales fell 3.2% and cafes and restaurants dropped 2.6%.
Warehouse Group, the biggest retailer on the NZX 50, rose 1.2% to $4.30. Hallenstein Glasson Holdings, the clothing retailer, fell 0.3% to $3.12.
Pan Pacific Petroleum rose 1.8% to 56 cents as crude oil climbed above US$79 a barrel during Asia’s day. New Zealand Oil & Gas gained 1.8% to $1.72.
Tapware maker Methven fell 4.5% to $1.48 and Infratil Ltd. shed 1.9% to $1.53.