MARKET CLOSE: Nuplex up, Michael Hill down

Jan. 13 – New Zealand stocks were mixed, with as many companies rising as falling after business confidence slumped and the New Zealand dollar tumbled.

The NZX 50 Index rose 6.37, or 0.2%, to 2774.64, its third daily gain. Within the index, 19 stocks rose, 19 fell and 12 were unchanged. Nuplex Industries, which makes resins used in paints and printing inks, rose 3.3% to NZ$3.10 as prices for crude oil and petrochemicals fell.

Crude oil fell for a sixth day amid speculation U.S. Energy Department figures tomorrow will show rising inventories as demand for oil falters. Crude for February delivery fell to US$37.21 a barrel in Singapore, bringing its six-day slide to 24%.

New Zealand Oil & Gas, which owns 12.5% to the Tui oilfield and a stake in the Kupe field coming on stream this year, fell 1.6% to NZ$1.22.

Michael Hill International fell 1.8% to 55 cents as the price of gold rose. Gold for February delivery gained 0.6% to US$826 an ounce on the New York Mercantile Exchange.

Shares tied to the performance of the domestic economy fell after a report showed business confidence tumbled in the fourth quarter with companies the gloomiest about their own prospects since at least 1970.

A net 64% of companies expect the New Zealand economy will deteriorate over the next six months, according to the New Zealand Institute of Economic Research’s Quarterly Survey of Business Opinion. Gloominess worsened from the third quarter when a net 19% saw worse times ahead.

Trucking firm Mainfreight Ltd. fell 3.1% to NZ$4.65 and Freightways Ltd. declined 2% to NZ$2.93. Port of Tauranga slipped 0.8% to NZ$6.50.

Australia’s APN News & Media, whose biggest asset is the New Zealand Herald newspaper, fell 5.3% to NZ$2.68.

Further signs of a prolonged economic slump have stoked expectations that the central bank will slash the official cash rate to as little as 4.25% when its reviews monetary policy on Jan. 29.

Fisher & Paykel Healthcare, which gets some 80% of revenue in U.S. dollars, gained 1.9% to NZ$3.20 after the kiwi dollar tumbled. The local currency tumbled to a four-week low after the QSBO and after Standard & Poor’s lowered the outlook on the nation’s AA+ long-term, foreign currency credit rating to negative.

The kiwi dollar traded at 65.18 U.S. cents from 58.83 cents yesterday.

In Sydney, the S&P/ASX 200 Index fell 0.8% to 3654.6 as falling prices for oil and metals drove down commodity producers and oil companies. BHP Billiton fell 1.7% to A$30.30 and Rio Tinto declined 2.5% to A$40.28.

Orica, which supplies mining services, fell 4.8% to A$14. Woodside Petroleum fell 2.8% to A$34.72.

In Japan, the Nikkei 225 Index tumbled 4.2% to 8463.16 in early afternoon trading as the yen strengthened, denting prospects for exporters, and amid concern earnings will weaken at Japanese companies.

Sony Corp. fell 7.7% and Toshiba Corp. dropped about 6%. Toyota Motor declined 5.4%.

(Businesswire)

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