MARKET CLOSE: NZ shares rise, led by Wrightson; HLG falls

MARKET CLOSE: NZ shares rise; Wrightson leads gainers, Hallenstein falls

By Jason Krupp

June 1 (BusinessDesk) - New Zealand stocks rose, with PGG Wrightson Ltd. leading gainers after it agreed to sell its half stake of New Zealand Merino Co. for $7.6 million, while Hallenstein Glasson Holdings fell.

The NZX 50 Index rose 3.89 points, or 0.1%, to 3,551.54. Within the index, 18 shares rose, 13 fell, and 19 were unchanged. Turnover was $135.1 million.

Wrightson, the rural services company, rose 3.9% to 53 cents after partner Merino Grower Investments Ltd. agreed in principal to buy its NZ Merino stake, conditional on shareholder approval.

The partial takeover has been heralded as a move toward rationalising of the rural services company, with a growing focus on the profitable seeds business.

Goodman Fielder Ltd., the Australian food ingredient company, rose 3.7% to $1.42 after the company appointed a new chief executive after its last head, Peter Margin, left at the end of April.

Chris Delaney, formerly president for Asia-Pacific for the Campbell Soup Company, has been tapped as its new CEO.

Fisher & Paykel Appliances Holdings, the whiteware manufacturer, rose 3.2% to 64 cents, with the stock continuing to attract investor interest after the company's full year earning showed it had returned to profit.

"Investors seem to be viewing it as a recovery position," said Grant Williamson, a director at Hamilton Hindin Greene. "The appliance operation's outlook is still uncertain but they did say they would reinstate dividend payments for shareholders as fast as possible."

Tower Ltd., the general insurer controlled by Guinness Peat Group, rose 1.7% to $1.76, after the government today proposed allowing private companies to compete with the Accident Compensation Corp. for workplace accident cover.

Heartland New Zealand, formerly known as Building Society Holdings, rose 2.9% to 70 cents after its first day of trading under its new name.
Hallenstein Glasson, the clothing retailer, fell 2.5% to $3.83, leading decliners on the exchange in the wake of weaker third quarter sales.

Earlier this week the company said the mild winter and having seven of its Christchurch stores still closed was the reason behind a 2.4% fall in group sales in the 17 weeks ended May 29 compared with the same period a year earlier.

Guinness Peat Group, the investment holding company, fell 2.3% to 84 cents.

Contact Energy Ltd., the electricity company, fell 1.7% to $5.90.

Abano Healthcare Group, the specialist healthcare clinic investor, fell 0.2% to $4.63 after it announced it had secured a A$30 million five-year banking debt facility with CBA to help fund its Australian dental business, Dental Partners.

The facility is in addition to an already existing A$25 million loan which has been fully utilised. Abano owns 70% of Dental Partners.

NZ Farming Systems Uruguay Ltd., the South American farm operator controlled by Singapore’s Olam International Ltd., fell 2.9% to 68 cents after it announced it had reached an agreement to sell its Los Naranjos farm which, if it goes unconditional during the next 60 days, will realise US$1.6 million over book value.

New Zealand commodity prices edged up to a new record in May, led by kiwifruit at the start of a new season. Prices in New Zealand dollars fell from a record level as the kiwi dollar climbed to a post-float high.

The ANZ Commodity Price Index rose 0.3% in May, the smallest gain of nine consecutive increases, following a 1.6% gain in April.

The New Zealand dollar recently bought 82.17 U.S. cents, having reached 82.62 cents yesterday, the highest since being allowed to trade freely in March 1985.

(BusinessDesk)

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