MARKET CLOSE: NZ shares rise as business confidence grows

MARKET CLOSE: NZ shares rise amid improving business confidence

Jan. 11 (BusinessDesk) - New Zealand stocks rose for a second session, with moderately upbeat business confidence numbers for the December quarter helping boost investor appetite. Telstra Corp. paced gainers on the exchange, while Pyne Gould Corp. led decliners.

The NZX 50 Index rose 5.65 points, or 0.2%, to 3329.72. Within the index 15 shares rose, 19 fell and 16 were unchanged. Turnover was $73.4 million.

The New Zealand Institute of Economic Research's Quarterly Survey of Business Opinion showed more companies expect better things this year than they did through the tail-end of 2010 after the country dodged a 'double-dip' recession.

Grant Williamson, a director at Hamilton Hindin Greene said that although the results were largely anticipated by the market it did see some "positivity come back into the market".

Telstra Corp., the Australian telecoms company, rose 1.9% to $3.70, Fisher & Paykel Appliances Holdings, the whiteware manufacturer, rose 1.8% to 57 cents, while Argosy Property Trust, the listed property investor, rose 1.4% to 73 cents.

Fletcher Building Ltd., New Zealand's biggest construction company, rose 0.6% to $7.83 after building consent data for November showed renewed signs of life in the previously dormant non-residential building sector.

Government figures showed the value of non-residential building permits for the month grew by 7.2% to $479 million compared to the same period a year ago, accounting for almost half of the total value of consents for November.

The figure offset the decline in the value of residential building permits excluding apartments, which fell 4.4% to $514 million.Separately, Crane Group today rejected Fletcher's revised takeover offer after the company was obliged to increase the cash component of its bid for Crane shares by A4 cents, to A$3.47 a share, after the Fletcher share price fell following the hostile bid.

The bid still values Crane shares at A$9.35 apiece."Fletcher may have to rethink its pricing as it doesn't look like the offer is getting too much traction with the Crane board," Williamson said.

Contact Energy Ltd., New Zealand's third biggest listed company, rose 0.7% to $6.23. After the market close, the electricity company announced that David Baldwin will transition out of his secondment as managing director over the next three months to take up the position of chief development Officer at Origin Energy.

Dennis Barnes, general manager of energy risk management at Origin, will replace Baldwin.

Pyne Gould Corp., whose Marac Finance unit recently merged with the Southern Cross and Canterbury building societies to form Building Society Holdings Ltd., fell 2.6% to 38 cents, pacing decliners on the exchange.PGG Wrightson fell 1.9% to 53 cents.

The rural services company is facing a takeover offer from Chinese agricultural and seeds researcher Agria which is looking to boost its holdings to just over half, with an offer of 60 cents a share. Pyne Gould, which holds an 18.3% stake in the rural services company, has agreed to sell its holdings to Agria.

Wellington Drive Technology Ltd. fell 19.2% to 2.1 cents, according to Reuters, after trading in limited rights to the company’s deeply discounted one-for one $8.4 million capital-raising commenced today. The Albany manufacturer of energy-efficient motors is offering new shares at 1.25c each - a 52% discount on yesterday’s closing price for the head shares of 2.6 cents.

(BusinessDesk) 18:03:43

© Scoop Media