MARKET CLOSE: NZ stocks mixed; Sky TV gains, Cavalier falls

MARKET CLOSE: NZ stocks mixed; Sky TV gains, Cavalier falls

By Jason Krupp

Sept. 29 (BusinessDesk) - New Zealand stocks closed mixed amid ongoing concerns that the European sovereign debt crisis will drag the global economy in recession. Sky Network Television Ltd. rose and Cavalier Corp. fell.

The NZX 50 Index rose 1.44 points, or 0.04%, to 3,300.16, with a turnover of $118.3 million. Within the index, 16 stocks rose, 22 fell, and 12 were unchanged. The New Zealand dollar was little changed at 77.84 U.S. cents at 5pm from 77.83 cents at 8am, and was down from 78.45 cents yesterday.

"There's a lot of uncertainty in the market and people are just looking for a definitive solution to Greece and how much private bond holders are going to lose," said Greg Easton, an adviser at Craigs Investment Partners. "What has brought on orders is people are reading the annual reports, liking what they are seeing and adding to the companies they know."

Sky Network, the pay television operator which last month reported a 16.8% lift in annual profit, rose 3.5% to $5.40, leading gainers on the exchange. The stock is rated 'outperform' according to the consensus view of eight analysts compiled by Reuters.

Kathmandu Holdings, the outdoor clothing and equipment retailer rated as by according to Goldman Sachs, rose 2.8% to $2.18.

PGG Wrightson Ltd., the rural services company which recently sold its finance unit to Heartland New Zealand Ltd., rose 2.6% to 39 cents.

Vector Ltd., the Auckland electricity and gas distributor, rose 1.6% to $2.52. The company earlier this week scored a victory against the Commerce Commission after the High Court opened the way for a review of how the regulator calculates the price energy monopolies can charge their customers..

Westpac Banking Corp., one of the big four Australian lenders, rose 1.6% to $25.90.

Telecom Corp., the country's biggest phone company, rose 1% to $2.55 after it announced that its wholesale unit has signed up retail rival CallPlus Group for its third-generation mobile services.

CallPlus plans to use Telecom’s national mobile network to re-launch its mobile offering in a bid to win new customers. The telecommunications company has previously used Vodafone New Zealand network.

Cavalier, the listed carpet maker looking to establish a wool scouring monopoly in New Zealand, fell 4.7% to $3.05, leading decliners on the exchange after the stock shed its 11 cents a share final dividend.

AMP Ltd., the Australian wealth manager, fell 3.8% to $4.76.

OceanaGold Corp., the unhedged gold miner, fell 1.7 percent to $2.86 as the gold price continued to weaken, with the precious metal last trading at 1,617.50 an ounce, down from US$1,651.29 yesterday.

Separately the company also announced that there had been a fatality at it troubled Didipio project in the Philippines.

Pumpkin Patch Ltd., the children's clothing chain, fell 2.5% to 78 cents, with the stock continuing to come under pressure after it earlier this week reported a $1.8 million net loss as it wound down its U.S. operations and shut under-performing stores in the U.K.

Energy Mad Ltd., the energy efficient light bulb marketer, extended the closing date of its initial public offering until Oct. 12 after failing to reach its $5 million minimum sought by the closing date last week.

Investor interest in the stock has been low due the company's decision to take the company to market by themselves instead of using the brokerage network, according to Easton.

"Given clients' caution at the moment they want something they can understand and someone to talk to," he said.

Steel & Tube Holdings, the construction materials supplier which this week tapped Janie Elrick as its new chief financial officer and company secretary, fell 2.1 percent to $2.30.

(BusinessDesk)

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