MARKET CLOSE: NZ stocks rise, paced by Telecom, Nuplex

MARKET CLOSE: NZ stocks rise, paced by Telecom, Nuplex

By Jason Krupp

Sept. 13 (BusinessDesk) - New Zealand stocks rose, paced by Telecom Corp., after the phone company released details of costs for its demerger that met analyst expectations. Nuplex Industries led the advance.

The NZX 50 Index rose 21.59 points, or 0.7%, to 3,285.40. Within the index, 21 stocks rose, 15 fell, and 14 were unchanged. Turnover was a lower than usual $71.2 million.

The kiwi dollar rose to 82.32 U.S. cents at 5pm from 82.22 cents at 8am, and rose to 72.06 on a trade-weighted index of major trading partners' currencies from 71.94 this morning.

Asia Pacific stocks were mixed in afternoon trading as investors digested reports that China was in negotiations to buy a tranche of Italian government bonds, a move that appeared to quell some fears that the Greek debt crisis was spreading to the broader euro zone economy.

Telecom, the nation's biggest phone company, rose 2% to $2.51 after it announced that the separation of its network and retail businesses would cost $150 million, but would yield benefits of $500 million from taking part in the government's ultrafast broadband project.

"There seems to be some relief out there that the costs were not a whole lot higher than had previously been estimated," said Shane Solly, portfolio manager at Mint Asset Management.

Interest in Telecom, New Zealand second-biggest listed company, was also lifted by investors looking to buy good quality defensive stocks that may have been oversold amid the recent market volatility, Solly said.

Nuplex Industries Ltd., the chemicals and resins manufacturer, rose 2.5% to $2.87. The stock is rated 'outperform' according to the consensus view of six analysts polled by Reuters.

PGG Wrightson Ltd., the rural services company which last month posted a $30.7 million full year loss, rose 2.3% to 44 cents.

Auckland International Airport Ltd., the country's busiest gateway, rose 1.8% to $2.29. Vector Ltd., the Auckland electricity and gas distributor, rose 1.6% to $2.49.

SkyCity Entertainment Group rose 1.5% to $3.45 with investors betting the casino and hotel operator will be one of the winners out of the rugby world cup. The company had previously flagged that it expects to earn an additional $20 million from the event.

Goodman Fielder Ltd., the Australian food ingredient manufacturer which last month posted a full-year net loss of $166.7 million, fell 3.7%, leading decliners on the exchange.

Hallenstein Glasson Holdings, the fashion retailer, fell 2.7% to $3.21.

Heartland New Zealand Ltd., the financial services company looking to transform itself in to a bank, fell 1.8% to 54 cents.

AMP Ltd., the Australian wealth manager, fell for a second day, with the stock dropping 1.2% to $4.95.

Shares in Kirkcaldie & Stains fell 5% to $2.85. It was reported this morning that former Guinness Peat Group chairman Ron Brierley has become a substantial shareholder in the Wellington department store, lifting his stake to 5.7% from 4.4% previously at an average price of $2.85 a share.

Kathmandu Holdings, the outdoor clothing and equipment retailer which is set to release its full year results next week Wednesday, fell 1% to $1.98.

(BusinessDesk)

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