MARKET CLOSE: NZ shares rise, paced by Air NZ on buyback

MARKET CLOSE: NZ shares rise, paced by Air NZ on share buyback

By Hannah Lynch

Sept. 28 (BusinessDesk) - New Zealand shares rose, paced by Air New Zealand it said the share price doesn’t reflect the airline’s financial performance and it to commence a share buyback scheme. Telecom and Auckland International Airport led declining stocks.

The NZX 50 Index rose 25.11 points, or 0.7 percent, to 3834.14. Within the index, 30 shares rose, 9 fell and 11 were unchanged. Turnover was about $116 million.

Air New Zealand rose 5.4 percent to $1.16 and has gained 23 percent this year. The airline reaffirmed its outlook statement and said it's on track to "more than double normalised earnings before taxation," which clocked in at $91 million in the year to June 30.

"It is a positive sign operationally and financially," said Shane Solly, portfolio manager at Mint Asset Management.

Fletcher Building, New Zealand's largest construction company, gained 1.6 percent to $6.67. Port of Tauranga, the nation's busiest port, rose 1.9 percent to $12.69. SkyCity Entertainment Group, the casino company in talks with the government to build Auckland’s convention centre, increased 1.6 percent to $3.78.

Metlifecare, the retirement village operator, rose 0.4 percent to $2.90. It wants shareholders to sign-off on a 67 percent bump in the pool for directors’ fees after expanding its operations in the merger with Vision Senior Living and Private Life Care. The stock has gained 28 percent this year.

Shares in rival retirement village operator Ryman Healthcare, rose 1.2 percent to $4.10.

Stock exchange operator NZX rose 0.9 percent to $1.13 after appointing former commerce minister Simon Power and TVNZ and NZ Cricket director Therese Walsh to its board, effective Dec. 1.

The gainers were led by OceanaGold, up 8.1 percent to $4.00.

"The price of gold is having a strong run," Solly said. "People are becoming more optimistic about the price of gold after the weakening US dollar."

Pumpkin Patch down 1.7 percent to $1.16. The children’s clothing chain yesterday posted a 20 percent decline in full-year earnings to $10.1 million, meeting its forecast, as “challenging retail conditions” in all markets squeezed margins.

Telecom, the largest company on the NZX, fell 1.6 percent to $2.38. Auckland International Airport shed 0.4 percent to $2.62.

Dorchester Pacific, which avoided failure in 2010 by convincing investors to accept a debt-for-equity swap, rose 25 percent to 20 cents. It agreed to buy debt collection company EC Credit Control from its owner-manager for $18.5 million in cash, stock and earn-outs.

Zintel Group, the NZAX-listed telecommunications company, soared 7 percent to 46 cents after its shareholders voted in favour of delisting and giving the board the power to call in liquidators after the company sold all of its operating units and resolved a legal dispute.

(BusinessDesk)

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