MARKET CLOSE: NZ stocks rise, Fletcher leads as Aust$ falls

MARKET CLOSE: NZ stocks rise, Fletcher leads as Australian dollar falls

May 14 (BusinessDesk) – New Zealand shares rose, led by Fletcher Building on optimism a falling Australian dollar will stir demand in the company's second-largest market. Telecom and NZX paced the advance.

The NZX 50 Index rose 7.29 points, or 0.2 percent, to 3555.35. Within the index, 17stocks rose, 20 fell and 13 were unchanged. Turnover was $84.6 million, lower than in recent days that exceeded $100 million.

Fletcher rose 2.3 percent to $6.26, the highest since May 4. The Australian dollar fell to 99.97 US cents, the first time below parity this year. Turnover was a lower-than-average 906,356 shares traded.

"Fletcher is drifting up on light turnover helped by the weaker Aussie dollar," said Bryon Burke, head dealer at Craigs Investment Partners.

Oceanagold, the operator of the Macraes gold field, fell 5 percent to $2.41, the lowest close since August last year. Spot gold was recently quoted on Reuters at US$1,579.06 an ounce, near the lowest since early January.

Retailers were mixed after government figures showed sales fell 1.5 percent in the first three months of the year with lighter volumes at supermarkets and grocery stores. Warehouse Group, the biggest listed retailer, gained 1.5 percent to $2.71, clothing chain retailer Pumpkin Patch rose 1.1 percent to 93 cents. Fast food operator Restaurant Brands declined 1.4 percent to $2.12 and Michael Hill International fell 0.9 percent to $1.07.

Diligent Board Member Services climbed 2.4 percent to $3.43 after the governance software firm appointed former NZX boss Mark Weldon to its board.

Infratil fell 0.5 percent to $2.03 ahead of tomorrow's annual result, with improved earnings tipped after a strong result from its investment in electricity generator and retailer TrustPower last week. TrustPower shares rose 1 percent to $7.80 today.

Telecom shares climbed 1.5 percent to $2.63 after the phone company said it will trial new mobile technology in anticipation of a government auction of high-frequency radio spectrum. Telecom wants to shift towards 4G capability which will let its mobile network compete on an equal footing with high-speed landline broadband services. Chorus, the network company spun out of Telecom last year, increased 0.3 percent to $3.23.

Pharmacybrands was unchanged at 76 cents after Health Minister Tony Ryall announced a hike in prescription charges to $5 per item from its existing $3. The change would start from next year, and will be limited to a maximum of 20 items a year, in the first hike in prescription fees for two decades.

Guinness Peat Group was unchanged at 49.5 cents after the investment company sold its remaining stake in Shepherd Neame, a 300-year-old family controlled British brewer. GPG is winding up its portfolio to return funds to shareholders.

(BusinessDesk)

© Scoop Media