Mainfreight soars as investors welcome expansion
The shares rose nearly 6% after the company agreed to buy a Netherlands-based transport firm.
Mainfreight shares rose 5.8% today to a new high as investors expressed confidence in the logistics company's latest expansion offshore.
The 47c jump to 859 followed the company's agreement to buy Netherlands-based transport firm Wim Bosman Group for an initial purchase price of €110 million ($NZ209 million).
Grant Williamson, at Hamilton Hindin Greene, said that often when New Zealand companies made big acquisitions their share price fell, but Mainfreight was becoming a truly international logistic company. The share price reaction showed that investors had confidence in Mainfreight's management, he added.
Otherwise, the sharemarket was strong on a day other markets were weak as many investors anticipated that the official cash rate will be cut by the Reserve Bank on Thursday, making investments in shares more attractive.
Many economists are expecting the Reserve Bank will cut the OCR from 3% to 2.5% on Thursday, and today Prime Minister John Key said a cut in the rate would probably help the country.
The benchmark NZX-50 index closed up 11.948 points, or 0.35%, at 3430.054. Turnover was worth $155.75 million. There were 48 rises and 30 falls among the 114 stocks traded.
Xero rose 11c to 262 on a day it revealed US expansion plans at an investor day organised by NZX. NZX rose 1c to 186.
OceanaGold rose 5c to 347 and NZOG rose 2c to 90 on a day in which Canadian-listed Tag Oil reported an oil discovery at its onshore Taranaki prospect.
Pumpkin Patch rose 7c to 135, while Kathmandu eased 4c to 201 and Hallenstein Glassons eased 3c to 355. Pyne Gold Corp rose 1c to 30 and SkyCity rose 3c to 348.
Fletcher Building rose 3c to 884, Contact Energy rose 1c to 609 and Telecom eased a cent to 215.
Auckland Airport rose 2c to 228, Infratil rose 2c to 200 and TrustPower rose 1c to 713.
Westpac eased 19c to 3200, Tower eased a cent to 197.
NZPA
Mon, 07 Mar 2011
Mon, 07 Mar 2011
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Mainfreight soars as investors welcome expansion
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