MARKET CLOSE: NZ stocks rise to four-month

MARKET CLOSE: NZ stocks extend gain to four-month high led by NZ Refining

By Paul McBeth

Sept. 17 (BusinessDesk) – New Zealand stocks rose to a four-month high as New Zealand Refining Ltd.’s better margins boosted the oil refiner.

The NZX 50 Index rose 16.62, or 0.5%, to 3212.25. Within the index 25 stocks gained, 12 were unchanged and 13 declined. Turnover was $90.7 million. The index finished the week up 1.5%, and has stayed above 70 on the relative strength index, or RIS, since the start of the month, a level some technical analysts say means a security is poised to fall.

NZ Refining climbed 12% to $3.80 after its throughput and margin report for July and August showed margins “remained healthy” though still had an uncertain outlook.

“It had reasonable margins, which were a bit better than expected, and that’s probably the main driver of that gain,” said Alan Moore, who helps manage $600 million for Milford Asset Management.

Moore said the week ended relatively well, with several stocks, such as Sky City Entertainment Group and Freightways Ltd, going ex-dividend, but holding on to their pricing. Sky City rose 0.7% to $2.89, while Freightways fell 0.3% to $2.96.

Other major gainers on the day were children’s clothing retailer Pumpkin Patch Ltd., which gained 7.6% to $1.98, while GPS components manufacturer Rakon Ltd. advanced 5.1% to $1.23, after Harbour Asset Management said it was a substantial shareholder in the company. Harbour Asset is made up of the old Alliance Bernstein team, led by respected fund manager Andrew Bascand.

New Zealand Oil & Gas Ltd. rose 4.8% to $1.31 as the oil and gas explorer continued its share buy-back plan to bolster its share price. Coal miner Pike River Coal Ltd., which is part-owned by NZOG, rose to $1.11 respectively.

Fletcher Building Ltd., the biggest company on the exchange, rose 1.7% to $8.47 as some of its senior executives returned from a global roadshow to talk up the prospects of its U.S. Formica business, and the local opportunities from rebuilding Christchurch after this month’s earthquake.

DNZ Property Fund Ltd. gained 0.9% to $1.09 after chief executive Paul Duffy secured the first tranche of his bonus options, which could take his shareholder to 3.3% from 3%. Kiwi Income Property Trust gained 2.1% to 99 cents, while AMP New Zealand Office Trust gained 1.4% to 75 cents.

Steel & Tube Holdings sank 4% to $2.40, leading decliners on the index, after it went ex-div earlier this week.

Shares in Pyne Gould Corp. fell 2.4% to 41 cents, giving away yesterday’s gain after it entered a formal arrangement to merge its finance unit Marac Finance Ltd. with Southern Cross Building Society and Canterbury Building to form a bank. Standard & Poor’s put Marac’s speculative BB+ credit rating on creditwatch negative, saying it will increase to an investment grade BBB- if the merger’s successful. CBS shares extended its gain 3.5% to $3.00.

Whiteware manufacturer Fisher & Paykel Appliances Holdings pared some of the week’s gains, falling 1.6% to 60 cents, while fishing company Sanford Ltd. fell 1.7% to $3.96. Property for Industry Ltd. slipped 0.9% to $1.14.

A slew of failed companies were flagged for delisting from the stock exchange today, including carpet maker Feltex Ltd., financiers Dominion Finance Holdings and VTL Group, and Austral-Pacific Energy Ltd.

(BusinessDesk)

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