MARKET CLOSE: NZ shares rise in post-holiday catch-up

MARKET CLOSE: NZ shares rise in post-holiday catch-up; OceanaGold gains

Oct. 25 (BusinessDesk) New Zealand shares rose as the local market played catch-up after a three-day weekend when most equity markets rose on optimism for a solution to Europe’s debt crisis at a summit tomorrow. OceanaGold led gainers and Pumpkin Patch fell.

The NZX 50 Index rose 15.20, or, 0.5 percent, to 3296.36. Within the index, 30 stocks rose, 14 fell and six were unchanged. Turnover was $90.8 million.

European leaders made some progress at a weekend summit but resolved to hold a second meeting on Wednesday to try to thrash out an agreement.

OceanaGold, the operator of the Macraes gold field, rose 7 percent to $3. Spot gold was little changed at US$1,657.05 an ounce, having advanced about 2 percent in the previous days.

Sky Network Television rose 3.4 percent to $5.56, clawing back much of Friday’s decline when New Zealand’s biggest pay-TV company gave guidance for 2012 earnings that lagged behind analyst estimates while saying capital spending would be higher than expected.

Ebos Group, the medical products distributor, rose 0.6 percent to $6.60. The company has backed away from an acquisition in Britain because of deteriorating market conditions in Europe but is currently evaluating another “significant” Australasian purchase.

Ebos managing director Mark Waller told the annual shareholders' meeting last Thursday he expects many multinational healthcare companies “will be forced to exit their expensive Australian subsidiaries,” creating opportunities for Ebos.

Bathurst Resources, the coalmine developer, fell 3 percent to 76 cents.

Recoverable coal reserves have jumped by more than a third at its Buller coal project, driven by increases at the proposed Escarpment and Whareatea prospects, both of which still require resource consents before proceeding.

Nuplex Industries rose 1.5 percent to $2.68. The specialty chemicals maker has withdrawn a proposal to hike directors’ fees by about a third after concerns from shareholders about the scope of the increase.

The board had intended to put a motion to the company’s annual meeting on Nov. 2 lifting the fee pool available for directors to $1.5 million from $1 million, in what would have been the first increase since 2007.

Vector rose 0.4 percent to $2.53. The Commerce Commission will appeal a High Court decision that told it to go back to the drawing board on regulating prices for monopoly services.

The appeal is the latest twist in a tangle of legal actions led by Vector, the NZX-listed Auckland monopoly electricity and gas network owner, against the competition regulator’s interpretation of new parts of Part 4 of the Commerce Act, relating to monopoly pricing regimes.

Auckland International Airport fell 0.6 percent to $2.345. Total international passenger movements rose by 5.3 percent in September, while domestic passenger movements fell by 5.9 percent, the airport said today.

Visitors from France soared 708 percent and those from the UK climbed 121 percent, reflecting Rugby World Cup visits.

Pumpkin Patch, the children's clothing chain, fell 9.6 percent to 66 cents.

(BusinessDesk)

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