MARKET CLOSE: NZ stocks mixed; Sanford leads decliners

MARKET CLOSE: NZ stocks mixed; Sanford leads decliners, Nuplex gains

By Jason Krupp

June 7 (BusinessDesk) - New Zealand stocks were mixed, closing narrowly in the red as Asian-Pacific markets drifted. Sanford Ltd. led decliners, while Nuplex rose.

The NZX 50 Index fell 0.27 points, or 0.01%, to 3,460.55, its third decline in a row. Within the index, 18 stocks fell, 12 rose, and 20 were unchanged. Turnover was $108.1 million. That came in a day where local economic data was put off for another week after Statistics New Zealand said it needed more time to analyst first-quarter gross domestic product figures.

"The headlines have been a bit negative of late, and there's not a lot in the market that has been positive to support an upward more," said Karl Williscroft, a trader at Direct Broking in Wellington.

Sanford, the fishing company, fell 3.2% to $5.13, leading the bourse lower. The stock is rated 'underperform' according to a consensus poll of four analysts compiled by Reuters, with a median target price of $5.95.

Methven Ltd., the tapware manufacturer, fell 2.5% to $1.55 amid signs that the economy in Australia, the company's second biggest market after New Zealand, is beginning to lose momentum.

Wrightson, the rural services provider, fell 2.2% to 45 cents. PGW managing director George Gould said the company is switching its focus to staff and client relationships rather than "breaking the business up", a move that has been signed off by majority shareholder Agria Corp.

Fletcher Building Ltd., the country's biggest construction firm, fell 0.7% to $8.41, with the stock clawing its way back from an intraday low of $8.27 after official figures showed Australia's building industry shrank in June for a 13th straight month.

Australia's construction performance index dropped 3.8 points to 35.8 last month, the lowest level since March 2009, according to a survey by the Australian Industry Group and the Housing Industry Association. A reading below 50 indicates the industry is contracting.

Nuplex Industries Ltd., the industrial chemicals and resins manufacturer, rose 2.5% to $2.87, leading gainers on the exchange. The stock pared some of its recent losses amid speculation the company is facing higher raw material costs and lower demand from developed markets.

AMP Ltd., the Australian wealth manager, rose 2.1% to $6.40.

Air New Zealand Ltd., the national carrier, rose 1.8% to $1.14. The airline is said to be considering a bond issue, the first since 1991, according to an interest.co.nz report. No details on the bonds were available, but the company is being helped by First NZ Capital to test investor appetite.

Telecom Corp., the country's biggest phone company, rose 1.4% to $2.52 on reports that its AAPT unit will participate in Australia's National Broadband Network project, the trans-Tasman equivalent to New Zealand's ultrafast broadband initiative.

Tower Ltd., the insurer controlled by Guinness Peat Group, rose 1.4% to $1.50 after it cut its expected increase in reinsurance costs to as much as $26 million, and bolstered cover for the current financial year.

The insurer expects increased costs of between $22 million and $26 million as it deals with the impact of the Canterbury earthquakes, it said in a statement today, having previously flagged added costs of as much as $31 million on June 23.

Cavalier Corp., the listed carpet maker, rose 0.5% to $3.80. The receivers of Woolpak Holdings and Plum Duff Ltd. said they are talks with a serious bidder for their majority stake in New Zealand Wool Services International Ltd.

The existence of a new party interested in the 64.3% stake in the wool scourer emerged yesterday in the High Court in Wellington, where carpet maker Godfrey Hirst NZ Ltd. is challenging Cavalier Corp.'s attempt to buy WSI's assets and liabilities for $40 million. No further details were disclosed.

(BusinessDesk)

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