MARKET CLOSE: NZ stocks mixed; Goodman Fielder leads gainers

MARKET CLOSE: NZ stocks mixed; Goodman Fielder leads gainers, NZX falls

By Jason Krupp

June 10 (BusinessDesk) - New Zealand stocks were mixed, with Goodman Fielder Ltd. leading gainers on the exchange after rebounding after a sell-off on its exclusion from the MSCI Australia Index. NZX Ltd. fell.

The NZX 50 Index rose 1.88 points today, or 0.05%, to3490.62. Within the index, 18 stocks fell, 19 rose, and 13 were unchanged. Turnover was $128.3 million. On the week the benchmark declined 0.7%.

Goodman Fielder Ltd., the Australian food ingredient manufacturer, rose 3.2% to $1.29, with the stock recovering some of the ground it lost this week after it was excluded from the MSCI Australia Index under a weighting review, forcing institutional investors who track the index to sell their holdings in the company.

Tower Ltd., the general insurer controlled by Guinness Peat Group, rose 3.4% to $1.81.

Air New Zealand Ltd., the national carrier, rose 3% to $1.05, with the stock paring recent declines after chief executive Rob Fyfe said the airline was unlikely to make a profit in the second half, as it wrestles with high fuel costs and the lingering effects of the Christchurch earthquake and Japanese tsunami.

"This is just the normal course of an airline and happens fairly regularly, so it's no surprise the share price has been weak recently though it was perhaps a bit oversold," said Shane Solly, portfolio manager Mint Asset Management.

Cavalier Corp., the listed carpet maker, rose 1.4% to $3.65 after the Commerce Commission cleared the way for the company's subsidiary Cavalier Wool Holdings Ltd. to acquire the wool scouring assets of rival NZ Wool Services International Ltd., creating a New Zealand monopoly in the wool processing services.

Cavalier Wool Holdings is owned by Cavalier, Accident Compensation Corp.’s investment arm and private equity investor Direct Capital Investments.

The $40 million acquisition has been strongly opposed by the board of Wool Services, whose assets are up for grabs because its two biggest shareholders Plum Duff Ltd. and Woolpak Holdings, who have a combined 64% holding in the company, are in receivership. WSI shares were unchanged at 54 cents.

Burger Fuel Worldwide Ltd. rose 12.5% to 45 cents after the NZAX-listed fast food franchise posted a maiden annual net profit of $33,513 for the year ending March 31 on the back of solid Middle East trading, consolidation in New Zealand, cost cutting and the closing of a Sydney store.

The result compares with a $552,983 net loss reported in the previous year.

The company has accumulated $4.5 million in losses since its mid-2007 float.

NZX, the securities market operator, fell 3.7% to $2.35, leading decliners on the benchmark. The stock is rated as 'outperform' according to a consensus recommendation compiled by Reuters.

Argosy Property Trust, the listed property investor lead decliners on the exchange, with the stock falling 2.4% to 83 cents after it shed its 1.75 cents a share dividend today.

SkyCity Entertainment Group, the casino and hotel operator, fell 1.4% to $3.46.

Freightways Ltd., the express package company, fell 1.1% to $3.47.

Telecom Corp., the country's biggest phone company, rose 0.4% to 2.14.

The government has agreed to amend the company's operational separation undertakings for a fifth time, giving it a reprieve from a 2008 rule which stipulates its must keep its business units at arms length from each other.

Fisher & Paykel Appliances Holdings, the whiteware manufacturer, was unchanged at 62.5 cents after Gary Paykel said he would push back his retirement from the company's board for another 12 months.

The move is a bid to maintain stability on the board after Simon Botherway stepped down in April, and cornerstone shareholder Haier Group replaced its representative.

NZF Group, the financial services company, was unchanged at 3.5 cents. The company is set to give up control of its profitable home lending unit as it gets into the final stages of securing a new business partner.

An unnamed Australian private company will take a majority stake in NZF’s home loan division, the only profitable unit in the 12 months through March, in a joint venture that will focus on the financial services firm’s home lending activities.

(BusinessDesk)

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