MARKET CLOSE: NZ shares rise from 3-month low

MARKET CLOSE: NZ shares rise from 3-month low; Auckland Airport, Fletcher gain

Nov. 28 (BusinessDesk) – New Zealand shares rose from a three-month low as investors were lured to beat-up stocks including Auckland International Airport and Fletcher Building, and reports of a possible bailout for Italy stoked optimism about Europe’s debt crisis.

The NZX 50 Index rose 6.16 points, or 0.2 percent, to 3218.44. Within the index, 17 stocks rose, 22 fell and 11 were unchanged. Turnover was about $50 million, about half the daily average during October.

Auckland Airport rose 1.1 percent from the lowest in almost two months to $2.305. Last month, the nation’s busiest gateway affirmed its forecast for 2012 earnings growth of at least 7.5 percent, on rising passenger volumes and bigger returns from its retailing operations. The stock is rated a ‘hold’ based on a Reuters survey of analysts.

Fletcher Building edged up 0.2 percent to $5.87, snapping more than a month of almost continuous declines since the company flagged a 10 percent drop in first-half profit and no earnings growth in the full year.

Share markets rose across the Asia Pacific region after an Italian newspaper reported that the International Monetary Fund is preparing a 600 billion euro loan for the indebted nation. Japan’s Nikkei 225 Index climbed 1.5 percent in afternoon trading and Australia’s S&P/ASX 200 Index gained 1.7 percent.

“We’ve seen a continuation of the positive news overseas – the European exchanges had a reasonably positive Friday,” said Chris Timms, an investment adviser at Craigs Investment Partners in Dunedin.

OceanaGold, the operator of the Macraes gold field, rose 5.5 percent to $3.08 as the price of spot gold rose above US$1,700 an ounce.

Restaurant Brands, the fast food franchise operator, gained 3.4 percent to $2.15.

Fisher & Paykel Healthcare gained 1.3 percent to $2.37as a weaker New Zealand dollar gave exporters a tail wind. The kiwi dollar was recently at 75 US cents, down from 80.61 cents at the start of the month.

Vital Healthcare declined 1.3 percent to $1.16 after the health clinic investors shed its 1.925 cent interim dividend.

Methven, the tapware manufacturer, fell 5.5 percent to $1.04, the biggest decline on the benchmark index. Rakon dropped 5.3 percent to 54 cents.

Kathmandu, the outdoor equipment chain, fell 2.9 percent to $2.38.

Telecom gained 2.1 percent to $1.97 and Chorus, the network company spun off from Telecom in a five-for-one bonus issue, rose 0.6 percent to $3.31.

Gold explorer Glass Earth Gold fell 6.3 percent to 60 cents after reporting it lost C$670,000 ($855,246) in the three months ended Sept. 30, taking its loss for the first nine months of its year to C$993,000, down from a loss of C$1.1 million in the same nine months the previous year.

The company, which is listed on both the NZX's alternative board and the Toronto Stock Exchange's venture exchange, said the result included a C$327,000 write-off of accumulated exploration revenues.

(BusinessDesk)

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