MARKET CLOSE: NZ stocks rise; WHS, RAK, PRC gain

MARKET CLOSE: NZ stocks rise; Warehouse, Rakon, Pike River lead gains

By Jason Krupp

Oct. 4 (BusinessDesk) – New Zealand stocks rose for the second session, following gains in Asian markets on a day marked by tight volumes with China and parts of Australia closed for public holidays. Warehouse Group, Rakon Ltd., and Pike River Coal Ltd. paced gainers on the bourse.

The NZX 50Index rose 16 points, or 0.5%, to 3,228.9. Within the index, 27 stocks rose, 16 fell and seven were unchanged. Turnover was a lower-than-average $45.3 million.

With China closed for the Golden Week holidays, Japan’s Nikkei 225 was last up 0.3% up at 9,427.8, Hong Kong’s Hang Seng Index was up 1.3% at 22,650.6, and Singapore’s Straits Times Index was up 0.8% at 3,157.1.

“With most of Australia closed for holidays we’ve drifted higher on the positive flows we saw on Friday,” said Rickey Ward, domestic equities manager at Tyndall Investment Management.

Warehouse, New Zealand’s biggest retailer, rose 3.7% to $3.97, Rakon, the maker of crystal oscillators used in cellphones and GPS units, rose 3.3% to $1.25, and coal miner Pike River Coal rose 2.6% to $1.13

Property stocks maintained their momentum this week. The NZSX Property Index rose 0.9% to 799.4. Property for Industry, the industrial and commercial property investor, rose 2.7% to $1.19, Vital Healthcare Property Trust, the investor in specialist medical clinics formerly known as ING Medical Property, rose 2.4% to $1.28, and National Property Trust, which plans to dump its manager and become a regular company, rose 2% to 75 cents.

Rubicon Ltd., the biotech company, rose 1.3% to 80 cents after ArborGen Inc., the tree seedling company in which it owns a 33% stake, announced plans to raise up to US$75 million in a US initial public offering. Summerville, South Carolina-based ArborGen will use the proceeds to buy a new headquarters, manufacturing and research laboratories and to repay debt, it said. Other shareholders are International Paper and MeadWestvaco.

OceanaGold Corp., the gold miner, rose 0.4% to $5.02 after announcing two appointments related to the re-activated Didipio Gold-Copper Project in Luzon, the Philippines. Martyn Creaney was named project director. Mark Cadzow, currently chief operating officer for New Zealand, was named group chief operating officer, covering all of the company's operations.

Cavalier Corp., New Zealand’s only listed carpet maker, fell 4.5% to $2.95, leading decliner on the NZX 50.

Goodman Fielder Ltd., the Australasian food maker, fell 3.9% to $1.73 after the company announced that its New Zealand unit is planning to sell up to $250 million of bonds and is seeking preliminary indications of interest from existing investors.

Tower Ltd., the general insurer, fell 0.5% to $1.86 following its $118 million offer for Fidelity Life Assurance Co. Tower has offered $82 a share for Fidelity, made up of $55 cash and $27 of Tower shares.

“Most people are grappling with the offer, its likely success, and what it means for the share price. To me it seems a little hostile,” Ward said.

Fisher & Paykel Appliances Holdings, the whiteware manufacturer, fell 1.7% to 57 cents after the company sold the majority of its Cleveland manufacturing site in Queensland, Australia, for A$21.5 million. The proceeds will be used to repay debt and the company will lease back part of the facilities to house its sales team and warehouse operations.

SmartPay, the eftpos company, fell 2.9% to 0.33 cents after company said it is exploring the possibility of listing on the ASX as part it is major push into the Australian market.

The company, through its Australian Cadmus Australia subsidiary, already has 12,000 terminals in the market with Bank of Bendigo and Live Group (TaxiEPay). Managing director Ian Bailey said "an ASX listing is an appropriate and logical”.

Lyttelton Port, the South Island's biggest port, was unchanged at $2.49 after the company cancelled its protracted merger talks with Port Otago last week to focus on repairing the infrastructure damage caused by the Canterbury earthquake.

The New Zealand Council for Infrastructure Developments said the decision is a missed opportunity to optimise the freight transport network and is likely to have a significantly negative impact on both companies down the line.

(BusinessDesk)

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