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MARKET CLOSE: NZX 50 gains as Asahi makes trans-Tasman play

MARKET CLOSE: NZ stocks rise as Asahi makes trans-Tasman play for drinks makers

By Jason Krupp

July 4 (BusinessDesk) - New Zealand stocks rose as Japan’s Asahi group made a $129.3 million bid for local juice-maker Charlie's Group, the standout performer on the day, in a trans-Tasman grab for assets. Property stocks fell with AMP NZ Office Ltd. pacing decliners.

The NZX 50 Index rose 3.49 points, or 0.1%, to 3,478.49. Within the index, 19 stocks fell, 12 rose, and 19 were unchanged. Turnover was $137.8 million.

Charlie's, the soft drink and fruit juice maker, surged 53.6% to 43 cents, one cent short of the offer price from Asahi, which today launched a bid to acquire 100% of the company.

Charlie's founders Stefan Lepionka, Mark Ellis and Simon Neal, along with other majority shareholders, have already agreed to sell their stakes in the juice-maker, with the deal conditional on Asahi acquiring at least 90% stake to trigger an automatic takeover.

The deal is part of the Japanese brewer's Antipodean buying spree, with Asahi having simultaneously launched a A$188 million bid to buyout P&N Beverages Australia Ltd., the third biggest drinks maker by volume in Australia.

Pumpkin Patch Ltd., the children's clothing chain, rose 6.6% to $1.13, with the stock continuing to claw its way up after the June low when it announced it would close its retail store in the U.S., restructure its U.K. operations, and retrench up to 50 head office staff.

Freightways Ltd., the express package company, rose 3.4% to $3.35.

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"Freightways is up on light volumes after being sold off last week on a report which said competition was intense and pricing pressure irrational," said Rickey Ward, domestic equities manager at Tyndall Investment Management.

Restaurant Brand NZ Ltd., the fast food franchise operator, rose 2.8% to $2.54.

Fisher & Paykel Appliances Holdings, the whiteware manufacturer, rose 1.7% to 59 cents.

Skellerup Holdings, the rubber goods and milking equipment manufacturer, rose 1.6% to $1.25.

Property stocks were among the biggest decliners on the day, with AMP NZ Office Ltd., the specialist investor in office properties, falling 1.2% to 84 cents.

Argosy Property Trust, the property investment vehicle formerly known as ING Property, fell 1.2% to 84 cents. Argosy’s manager is trying to come up with a new offer for unitholders to internalise the management contract.

Goodman Property Trust fell 1% to 96 cents, and Kiwi Income Property Trust, the country's biggest property investor, fell 1% to $1.04.

Fletcher Building Ltd., the country's biggest construction firm, fell 0.5% to $8.56.

"People are concerned about the delay in rebuilding of Christchurch, and current earnings going forward look disappointing because of that," Ward said.

New Zealand commodity prices slipped for the first time since August last year, ending the run of golden weather for locally produced raw materials.

The ANZ Commodity Price Index slipped 1.2% to 308.5 last month from a record high in the measure’s first decline for 10 months, although the index is still at elevated levels.

Kiwifruit prices dropped 9% as the Northern Hemisphere’s fruit season kicks into life, while beef prices dropped 8% owing to an oversupply of imports by the U.S.

The price of whole milk powder and skins each dropped 3% last month, while wool prices hit a new record high, up 5% in June, while skim milk powder prices also rose 5%.

(BusinessDesk)

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