MARKET CLOSE: NZX 50 gains for 4th day; PGW leads

MARKET CLOSE: NZX 50 edges up for 4th day; Wrightson, retailers gain

Dec. 3 (BusinessWire) – New Zealand shares rose, pushing the NZX 50 Index up for a fourth day, as PGG Wrightson was buoyed by news a U.S. lawsuit against its cornerstone shareholder was dismissed. Retailers with Australian outlets rose as figures showed a gain in consumer spending across the Tasman.

The NZX 50 climbed 4.48, or 0.1%, to 3153.93. Within the index, 20 stocks rose, 13 fell and 17 were unchanged. Turnover was $149 million, reflecting turnover in Telstra Corp. shares recorded on the NZX, along with Westpac Banking Corp., Telecom Corp. and Fletcher Building.

Wrightson, which completed its capital raising last month, climbed 6.9% to 62 cents after announcing that the U.S. District Court for the South District of New York ruled in favour of Agria Group and its underwriter over allegations it failed to disclose all pertinent information at the time of its IPO in 2007.

Kathmandu Holdings, the outdoor equipment chain, gained 3.9% to $2.13, leading advances in retailers with Australian stores. Retail sales in Australia rose 0.3% in October, rebounding from a 0.2% decline in the previous month, figures today showed.

Jeweller Michael Hill International advanced 3.2% to 65 cents, clothing chain Hallenstein Glasson Holdings rose 3% to $3.30 and children’s clothing retailer Pumpkin Patch gained 2.2% to $1.90.

Retailers in Australia, one of the few major economies to avoid recession, bare upbeat about their prospects in the peak Christmas season.

Gerry Harvey, chairman of electronics chain Harvey Norman Holdings, told Bloomberg that the retailer “had very good sales figures in October and November and I can’t think of any reason why that won’t follow into December.”

Warehouse Group, the biggest retailer on the NZX 50, rose 1% to $4.12. The company is preparing for the prospect of strikes during peak Christmas trading after the breakdown of talks with the National Distribution Union.

When and if staff go on strike during the holiday season, “our managers at affected stories will call for volunteers to fill the gap,” general manager operations Karl Parker told BusinessWire.

Fisher & Paykel Healthcare rose 2.2% to $3.28 while F&P Appliances climbed 1.7% to 59 cents.

Steel & Tube Holdings declined 2.5% to $2.73, the biggest decline on the NZX 50 today. The stock is rated ‘reduce’ by Forsyth Barr analyst Rob Mercer, according to the ShareChat website. The earnings outlook at the steel building supplies company has deteriorated substantially due to lower steel volumes and lower steel prices, Mercer said. He expects earnings to remain low over the next few years.

Goodman Fielder, the Australian food and ingredients group, rose about 4% to $2.10 as investors await an announcement on the sale of its edible fats and oils business, which was flagged at its annual meeting last month.

(BusinessWire)

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