MARKET CLOSE: NZ shares mixed as ASX rises; GFF up

MARKET CLOSE: NZ shares mixed as ASX climbs; Goodman Fielder gains

Sept. 8 (BusinessWire) – New Zealand shares were mixed. The benchmark NZX 50 Index slipped 0.04% though almost three times as many stocks rose as fell. Goodman Fielder rose after Kraft Foods 10.2 billion pound offer for Cadbury lifted optimism about valuations of food makers.

The NZX 50 fell 1.14 to 3121.55, snapping three days of gains. Within the index, 22 stocks rose, eight fell and 20 were unchanged. The lively Australian market helped lift turnover, slowed by the U.S. Labor Day holiday, to $81 million.

Goodman Fielder rose about 7% to $2. Cadbury spurned Kraft’s initial offer and the maker of Oreo cookies is expected to sweeten its proposal.

Hallenstein Glasson, the clothing chain, was among companies with Australian sales that rose today as the S&P/ASX 200 Index climbed 1.6%. The stock briefly spiked up about NZ$1 in what may have been a glitch trade.

Fisher & Paykel Healthcare declined 2.6% to $3.38, the biggest fall on the NZX 50 today, as the kiwi dollar reached 69.5 U.S. cents. A high currency erodes the value of its U.S. sales.

“The markets are a bit concerned about the currency and that’s why that came off,” Alan Moore, who helps manage about $300 million at Milford Asset Management, said of the slide in Healthcare stock. “With the U.S. market closed I was expecting it to be flat, but I was surprised at how strong the Australian market performed today.

Australia & New Zealand Banking Group rose 2.3% to $26.95 on the NZX. Insurer AMP Ltd. gained about2% to $7.85 and Westpac Banking Corp. rose 1.7% to $30.50.

Telecom Corp., the biggest company on the NZX, fell 2.5% to $2.71. Analysts who attended a company briefing “came away with not very much,” Moore said.
NZ Farming Systems Uruguay fell 2% to 48 cents.

Freightways Ltd., the courier and logistics firm that won a contract from Australian Post, rose 3% to $3.06 after the NZX said the shares would enter the NZX 15 Index, replacing Fisher & Paykel Appliances.
The appliance maker which counts China’s Haier as a cornerstone shareholder, was unchanged at 75 cents.

“Freightways got a bit knocked when Toll Holdings announced it was coming into the market, but since it signed a deal with Post, it probably offset it,” Moore said.

Contact Energy fell 1.1% to $6.08 and Restaurant Brands declined 1% to $1.

(BusinessWire)

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