Market close: NZ shares extend gains, Fletcher hits two-week high
BUSINESSDESK: New Zealand shares rose, with Fletcher Building gaining to a two-week high after closing a laminate plant in Spain and selling non-core assets in Australia.
Renaissance, which is exiting its Apple distributorship, rose on light volume after recording an insurance gain.
The NZX 50 Index rose 4.47 points, or 0.1%, to 3444.63. Within the index, 21 stocks rose, 17 fell and 12 were unchanged. Turnover was $81.3 million.
Fletcher, the biggest construction company on the NZX 50, rose 2.3% to $6.20, the highest since June 20. The stock is rated "outperform" based on a Reuters poll of 11 analysts, with a price target of $7.15.
Fletcher yesterday announced the sale of the metals distribution businesses it gained by buying Crane Group and on Friday reported the closure of a Formica plant in Spain.
PGG Wrightson, the nation’s largest rural services company, gained 3.3% to 31 cents even after figures showed prices of New Zealand’s mainly farm-based commodities fell to the lowest level since March 2010 last month.
Wool processor and carpet maker Cavalier dropped 2.5% to $1.55. Wool prices fell 5% in June, based on the ANZ Commodity Price Index.
Telecom, the biggest company on the exchange, fell 0.8% to $2.43. Heartland New Zealand, the building society with aspirations to become a bank, sank 3.9% to 50 cents.
Renaissance, which plans to sell its distribution business, rose 3.8% to 13.6 cents after reporting it had received a further $785,000 insurance payment for losses relates to the February 2011 earthquake.
Freightways, the logistics and data management group, rose 1.3% to $3.88.
Yesterday, the company said it had bought printing and data management firm Dataprint NZ Ltd for up to $6.5 million, including $3.5 million based on meeting performance targets over the next three years.
NZ Refining, which operates the nation’s only oil refinery, fell 2.1% to $2.33.
Contact Energy, the biggest power company on the exchange, rose 0.2% to $4.86. TrustPower, which yesterday said it would proceed alone with an expansion of its Australian wind farm, having previously said it was seeking a partner, rose 0.5% to $7.60.
Rakon, which makes components for navigation systems and smart phones, gained 2% to 48 cents.