MARKET CLOSE: NZX50 gains amid hopes for European deal

MARKET CLOSE: NZ stocks rise as investors wait for euro headlines; OceanaGold gains, Heartland falls

By Jason Krupp

Sept. 28 (BusinessDesk) - New Zealand stocks crept up as risk-wary investors remained on the sidelines awaiting more concrete news out of Europe. OceanaGold Corp. led gainers for the third time this week, and Heartland New Zealand Ltd. fell.

The NZX 50 Index rose 5.33 points, or 0.2%, to 3,298.16, its second gain in a row. Within the index, 13 stocks rose, 20 fell, and 17 were unchanged. Turnover was $93.1 million. The New Zealand dollar fell to 78.48 U.S. cents at 5pm from 79.11 cents at 8am, and was up from 78.67 cents yesterday.

Asia Pacific markets were mixed on the day, with the positive leads from Wall Street and Europe petering out as investors nervously wait for European policymakers to reach a decisive action on Greece and moves to bolster the euro zone bailout fund.

"Risk trades are on and off at the moment, it just depends on what day you come to the market," said Adrian Vance, a director at Hamilton Hindin Greene. "Certainly sentiment is very fragile and volatile at the moment and investors are on edge."

OceanaGold, the unhedged mining company which operates the Macraes and Reefton goldfields, rose 5.8% to $2.91 amid signs that the gold price appears to have stabilised.

The precious metal recently traded at US$1,646.39 an ounce, marginally lower than US$1,649.04 yesterday, but well off the low of around US$1,550 seen earlier this week.

A positive day of trading on the S&P/ASX 200 Index saw dual-listed financial stocks rise, with Westpac Banking Corp., the Australian lender, gaining 2% to $25.50. AMP Ltd., the Australian wealth manager, rose 1.9% to $4.95. Australia & New Zealand Banking Group rose 0.1% to $24.72.

Air New Zealand Ltd., the national carrier, rose 0.9% to $1.09. The airline lashed out at the Commerce Commission's pursuit of airlines and freight forwarders calling the action "capricious", and saying the regulator should be focusing on airports to limit over-pricing in freight services.

Postie Plus Group, the clothing retailer, rose 8.1% to 20 cents after it boosted net profit 58% as it grabbed more market share despite weak demand from households. Net profit was $656,000 in the 12 months ended July 31, up from $415,000 a year earlier. Revenue rose 1.7% to $115.7 million.

Heartland, the financial services company looking to transform itself into a bank, fell 4% to 48 cents, leading decliners on the exchange.

Michael Hill International Ltd., the jeweller, fell 3.5% to 82 cents after shedding its 3 cents final dividend, payable on Oct. 10.

Nuplex Industries Ltd., the chemicals and resins maker which also went ex-dividend, fell 2.7% to $2.87.

Separately, the company announced it will pay A$23.5 million to buy rival Acquos Pty’s Masterbatch unit, its second Australian acquisition in three months.

Construction company Fletcher Building fell 0.3% to $7.55, having also shed its dividend today.

The New Zealand share market looked poised to shortly welcome another company onto the bourse after Quadrant Private Equity lodged an investment statement and prospectus, seeking up to $136 million in a partial sell-down of its stake in retirement village owner Summerset Group when it lists on the NZX.

That’s based on an indicative price range of $1.40 to $1.60 valuing the retirement village operator at between $301 million and $336 million.

(BusinessDesk)

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