MARKET CLOSE: NZ stocks rise on offshore sentiment

MARKET CLOSE: NZ stocks rise on offshore sentiment; AMP, Goodman, Westpac lead gains

By Jason Krupp

Aug. 30 (BusinessDesk) – New Zealand stocks rose for the third time in four sessions, following positive sentiment from offshore markets on the back of mildly more positive U.S. GDP data. Australian listed stocks AMP Ltd., Goodman Fielder Ltd., and Westpac Banking Corp. lead gains on the exchange.

The NZX 50 rose 29.4 points, or 0.9%, to 3036.8. Within the index 24 stocks rose, 9 fell and 17 were unchanged. Turnover was $92.2 million.

Markets around the Asia Pacific rose following a rally in U.S. stocks on Friday after an announcement from the U.S. Commerce Department which said the world’s largest economy grew at a 1.6% annual rate in the second quarter. While down from the department’s initial estimate of 2.4%, the drop-off wasn’t as bad as some economists had predicted.

Japan’s Nikkei was last trading 1.5% up at 9124.3, Hong Kong’s Hang Seng was 0.7% up at 20744.4, and Australia’s ASX was last 4440.1, up 1.6%.

“The U.S. clearly closed very strongly on Friday, and it is just natural that we would flow on from that stream,” said Rickey Ward, domestic equities manager at Tyndall Investment Management. “The market just seems to have a very short-term attention span right now.”

Goodman Fielder, the Australian food ingredient maker, rose 3.7% on the NZX to $1.67, pacing gains on the NZX 50. On the ASX, the stock was last trading 1.1% up at A$1.44.

Westpac, the Australian lender, rose 3.7% to $28.00, while wealth manager AMP rose 3.2% to $6.40.

Pyne Gould Corp. rose 2.5% to 41 cents. The finance company said last week that it is making progress in talks with partners Canterbury Building Society and Southern Cross Building Society, with a goal to merge the lenders next year and form the country's only locally-owned and listed bank.

Fisher & Paykel Healthcare, the medical device manufacturer, rose 3.2% to $2.90 after the company said it expects no earnings growth this year, reflecting a strong kiwi dollar.FPH chief executive, Mike Daniell, told shareholders at the NZX star’s annual general meeting on Friday that earnings will gain 10% “in constant currency terms.” Its shares last traded at $2.81.

New Zealand's merchandise trade deficit was bigger than expected last month as exports fell, stoking concern the key drivers of dairy products and forest products may be coming off the boil.

The trade deficit was $186 million in July, from a revised surplus of $214 million in June, according to Statistics New Zealand. Exports of $3.57 billion lagged behind the forecast $3.69 billion in a Reuters survey, while exports of $3.57 billion exceeded the forecast $3.7 billion.

The monthly value of exports was still a record for a July month, the government statistician said.

Pacing decliners on the NZX 50, Telstra Corp., the Australian telephone company, fell 4.1% to $3.50.

ING Property Trust, the healthcare-related property investor, fell 1.5% to 68 cents, Kathmandu holdings, the outdoor clothing retailer, fell 1.3 to 1.58, and Goodman Property Trust fell 1.1% to 93 cents.

Sky City Entertainment Group, the hotel and casino operator, fell 0.4% to $2.90. The Auckland-based hotel and casino operator is looking to expand its Adelaide business as part of the state government's riverfront development plans. The $250 million investment would see Adelaide Casino expand towards the river front, with enlarged gaming facilities, bars, restaurants and car parks, the Auckland-based company said in a statement.

Redgroup Retail, the owner of the Whitcoulls and Borders book stores, gained a waiver for breaches to its banking covenants and said chairman Rod Walker will step down, and its owner, Pacific Equity Partners, is looking at a range of options to bolster its balance sheet.

(BusinessDesk)

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