MARKET CLOSE: NZ shares rise; NZ Oil & Gas, Freightways gain

MARKET CLOSE: NZ shares rise; NZ Oil & Gas, Freightways climb

Oct. 27 (BusinessDesk) - New Zealand shares rose, led by companies giving upbeat messages to shareholders during annual meeting season, including NZ Oil & Gas, Freightways and Port of Tauranga.

The NZX 50 rose 6.49, or 0.2 percent, to 3303.47. Within the index, 22 stocks rose, 17 fell and 11 were unchanged. Turnover was a below-average $57.1 million.

Europe's efforts to reach agreement on containing its debt crisis have kept some investors from taking big bets, especially as the talks have dragged on this week. Leaders have now announced agreement on a second round of bailout funding for Greece, a step which may prevent contagion.

NZ Oil & Gas jumped 7.7 percent to 70 cents a day after chairman Tony Radford told shareholders the stock price was “ridiculously low”, even given the impact of the Pike River Coal failure and lack of big new energy finds.

Freightways gained 3.3 percent to $3.42 after telling shareholders at their AGM that profit rose 19 percent to a record in the first quarter, outpacing a 9 percent gain in sales.

"There's quite a few companies finding it pretty tough out there," said Craig Brown, senior investment analyst at One Path New Zealand. Freightways' performance "is an encouraging sign in that regard."

Port of Tauranga rose 1.6 percent to $9.75. It is rated a 'hold' based on the consensus of six recommendations compiled by Reuters, having climbed 29 percent in the past 12 months.

Chief executive Mark Cairns told shareholders today that first-quarter earnings rose 16%, putting it on track to meet analyst estimates for the full-year of $64 million to $67 million, an increase of as much as 16 percent.

"They are doing all the right things," One Path's Brown said. "They know they are in a very strong position. The sheer volume of what goes across Tauranga is so much bigger than everybody else."

Westpac rose 2.9 percent to $29.99 and Australia & New Zealand Banking Group rose 1.3 percent to $28.65 after National Australia Bank reported a 17 percent increase in second-half profit today.

Fletcher Building continued to recover from its recent 2 1/2-year lows, gaining 2.5 percent to $6.61.

Auckland International Airport rose 0.2 percent to $2.22. Chairman Joan Withers reiterated the company's forecast for 2012 earnings "in the $130 millions", a gain of at least 7.5 percent.

In other exchange news, Summerset Group, the retirement village operator controlled by Quadrant Private Equity, raised the $123.6 million it had targeted in the largest New Zealand initial public offering in two years. The shares were sold at $1.40 apiece.

(BusinessDesk)

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