MARKET CLOSE: NZX 50 extends gain, Xero hits new high on index addition

The NZX 50 Index extended gains to a new record, led by Xero which reached a fresh high after being included on an Asia-Pacific index, and Air New Zealand which continued to rise on post-earnings optimism.

The benchmark index rose 41.701, or about 0.8 percent, to 5114.791. Within the index, 27 stocks rose, 13 fell and 10 were unchanged. Turnover was $170.6 million.

"The whole New Zealand market is going nuts at the moment," said Greg Easton investment advisor at Craigs Investment Partners. Investors were drawn to the potential of growth and good economic indicators in the New Zealand market, as opposed to more risky emerging market options, he said.

Xero climbed 4.4 percent to $44.49, with an intraday high of$45.99. The Wellington-based accounting software stock was included on a FTSE Asia-Pacific, excluding Japan, mid-cap index.

Air New Zealand climbed 3.2 percent to $1.915, a six-year high. The national carrier lifted first-half earnings by controlling costs and said full-year profit would rise more than 17 percent.

Across the Tasman, government data showed stronger than expected growth in retail sales and trade. Among companies with exposure to the Australian economy, Fletcher Building rose 1.6 percent to $9.80, SkyCity Entertainment Group, operator of Darwin and Adelaide casinos, climbed 0.8 percent to $3.98 and A2 Corp gained 1.1 percent to 94 cents.

Auckland International Airport rose 0.5 percent to $3.87 and Telecom fell 1 percent to $2.465.

Warehouse Group was unchanged at $3.61 and is in a trading halt as New Zealand's largest listed retailer seeks to raise $115 million to strengthen its capital base. It plans to sell $100 million of shares at $3.23 to institutional investors today, and will sell $15 million of shares to kiwi shareholders.

Fellow retailer Hallenstein Glasson was unchanged at $3.13 as was outdoor clothing chain Kathmandu Holdings at $3.40. Brisbane-based jeweller Michael Hill International was the day's worst performer, falling 3 percent to $1.31.

Partially-privatised electricity company MightyRiverPower slipped 0.5 percent to $2.055, Meridian Energy gained 0.5 percent to $1.10 and Contact Energy rose 1.9 percent to $5.33. The Electricity Authority, the industry's regulator, said it was "unacceptable" for energy retailers to blame other parts of the sector for price hikes and would be investigating the claims.

Lines company Vector rose 0.4 percent to $2.46.

Of the retirement village operators, Summerset Group Holdings rose 1.8 percent to $3.48, Metlifecare gained 1 percent to $4.16 and Ryman Healthcare rose 1.5 percent to $8.31.

Outside the benchmark index, retailer Briscoe Group was unchanged at $2.56. It posted a 10 percent gain in annual profits and said it was "cautiously optimistic" about the year ahead.

(BusinessDesk)


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NZ Market Snapshot

Forex

Sym Price Change
USD 0.7257 -0.0026 -0.36%
AUD 0.9480 0.0014 0.15%
EUR 0.6472 -0.0017 -0.26%
GBP 0.5585 0.0000 0.00%
HKD 5.6270 -0.0182 -0.32%
JPY 73.6510 0.1340 0.18%

Commods

Commodity Price Change Time
Gold Index 1321.0 -5.860 2016-09-28T00:
Oil Brent 49.2 2.720 2016-09-28T00:
Oil Nymex 47.0 2.380 2016-09-28T00:
Silver Index 19.1 -0.050 2016-09-28T00:

Indices

Symbol Open High Last %
NZX 50 7305.4 7349.8 7290.4 0.73%
NASDAQ 5312.7 5320.6 5305.7 0.24%
DAX 10545.6 10575.3 10438.3 0.89%
DJI 18240.2 18349.9 18228.3 0.61%
FTSE 6849.4 6935.8 6849.4 1.15%
HKSE 23828.6 23828.6 23619.7 0.51%
NI225 16606.3 16756.4 16465.4 1.39%
ASX 5412.4 5473.3 5412.4 1.09%