MARKET CLOSE: NZ stocks rise as Japan concerns ease; APN up

MARKET CLOSE: NZ stocks rise as Japan concerns ease; APN paces gainers, Pyne Gould falls

By Jason Krupp

March 21 (BusinessDesk) - New Zealand stocks rose amid reports that Japan is making progress in cooling near-critical reactors at Fukushima power plant, north of Tokyo, soothing fears of a prolonged crisis that could undermine the region’s growth. APN News & Media Ltd. paced gainers while Pyne Gould Corp. fell.

The NZX 50 Index rose 8.85 points, or 0.3%, to 3,348.36. Within the index, 22 stocks rose, 16 fell, and 12 were unchanged. Turnover was $173.1 million.

APN, the Australian media company whose shares lost almost a tenth of their value on Friday, rose 3.5% to $2.07. The company today said the Queensland floods and Christchurch’s earthquake will shave about A$9 million from first quarter earnings.

Earnings before interest and tax in New Zealand would fall about A$4 million, including an A$1 million impact from the weaker kiwi dollar against the Australian dollar, it said. The company doesn't publish quarterly numbers and gave no context for the A$9 million figure. First-half EBIT was A$87 million last year.

Fisher & Paykel Appliances Holdings, the whiteware maker, rose 0.9% to 57.5 cents, after the company announced it had signed an agreement to supply parts to cornerstone shareholder Haier of China.

FPA will earn between $20 million and $35 million a year by selling components and technology, mainly motors, to 20% shareholder Haier for at least three years. The deal is expected to cost the whiteware manufacturer some $25 million in capital investment, and can be renewed for as long as a further seven years.

"There are still people who continue to believe that Fisher & Paykel will be taken over," said Rickey Ward, domestic equities manager for Tyndall Investment Management. "This announcement, that a major shareholder has provided a revenue opportunity for them, will pour cold water on that."

Methven Ltd., the tapmaker, rose 1.3% to $1.56, with shares clawing back some of the ground lost on Friday when the company cut its full-year earnings forecast for a second time, with profit expected to fall 10% to 15% in the year ending March 31.

Pyne Gould Corp., the financial services company, fell 3.3% to 29 cents, leading decliners on the NZX.

Kathmandu Holdings, the outdoor clothing and equipment retailer, fell 2.7% to $2.16, with shares paring last week's gains when the company said strong sales growth in Australia and New Zealand helped lift first-half net profit to $10.5 million, from $4.4 million a year earlier.

Air New Zealand Ltd., the national carrier, was unchanged at $1.12 after ratings agency Moody's Investor Service lowered the airline's credit rating outlook to ‘negative’ from ‘stable’ because of the Christchurch and Japanese earthquakes and escalating jet fuel prices.

"Given indications, that one minute they’re profitable and the next minute they're not, it shows they're a company at the mercy of global issues," Ward said.

Fletcher Building Ltd., New Zealand's biggest construction firm, fell 0.3% to $8.73. The company today extended its takeover offer for pipemaker Crane Group, saying it expects to pick up shares from some institutional investors, bringing its total holding to 70.4%.

The Auckland-based company pushed out the close of the offer until March 31 from March 25, it said in a statement today. The extension would allow Tyndall Investments to accept the offer in relation to its 7.7% holding of Crane. In addition, some 7.6% of Crane’s stock is in the process of being accepted through Fletcher’s Institutional Acceptance Facility, it said.

Auckland International Airport Ltd., the country's busiest gateway, announced after the close of the market that it had mutually agreed with Queensland Airport to cancel its agreement to extend its shareholding in the South Island airport.

Air New Zealand and a number of local business groups have objected to the deal, which is currently being challenged in the High Court. The airport company’s shares fell 0.5% to $2.14.

(BusinessDesk)

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