New Zealand shares rose, extending the NZX 50 Index's unbroken run through March as investors bought Telecom for its yield and bet on stocks tied to a return of global growth including Fisher & Paykel Appliances.
BUSINESSDESK: New Zealand shares rose, extending the NZX 50 Index's unbroken run through March as investors bought Telecom for its yield and bet on stocks tied to a return of global growth including Fisher & Paykel Appliances.
The NZX 50 gained 34.73 points, or about 1 percent, to 3533.72, the highest close since early June last year. Within the index, 29 stocks rose, 15 fell and six were unchanged. Turnover was $161 million, second only to yesterday in terms of value this year.
Telecom, which spun off its Chorus network business in November, rose 2.2 percent to $2.53. The stock hasn't fallen this month and has advanced 19 percent this year. At today's price it has a dividend yield of about 12 percent. Chorus was unchanged at $3.62 and has gained 15 percent this year.
"People around the world are continuing to seek yield and they have high yield," James Lindsay, equities manager at Tyndall Investment Management, said. "It has been a pretty solid start to the year all round with very solid support for a number of New Zealand names.
F&P Appliances rose 5.2 percent to 51 cents as signs of a return to growth in the US stoked demand for companies that are poised to benefit.
"People are taking on more risk in their portfolios and this has financial leverage and leverage to the economic cycle, Lindsay said.
Pumpkin Patch, the children's clothing chain, rose 5.5 percent to 96 cents, the highest close since August last year. The company took charges to against its first half earnings for the cost to close its unprofitable stores in the US and the UK. Sales rose.
"It was a pretty messy result," Lindsay said. Still, "they have gone through the hardest part and survived it and they haven't need to raise more debt."
Goodman Fielder rose 8.1 percent to 94 cents, the biggest percentage gain on the NZX 50 today.
Sky City Entertainment Group rose 4.4 percent to $4.05, the highest since January 2008. The company's results showed it has made gains from its core Auckland facilities.
Fletcher Building, the construction and building products group, rose 1.9 percent to $6.98, a five-month high.
OceanaGold fell 4.8 percent to $2.95 as a rising US dollar weighed on the price of gold. PGG Wrightson fell 2.5 percent to 39 cents.
Trade Me, the auction website, rose 0.6 percent to $3.42, the highest level since its initial public offering.
