Market close: NZ shares edge up – Kathmandu, Pumpkin Patch gain

BUSINESSDESK: New Zealand shares rose, led by retailers with stores in Australia such as Kathmandu and Pumpkin Patch, after figures this week showed stronger-than-expected consumer spending across the Tasman.

The NZX 50 Index rose 1.08 points, or 0.03%, to 3484.20. Within the index, 20 stocks rose, 18 fell and 12 were unchanged. Turnover was about $99.6 million.

Kathmandu, the outdoor equipment chain, rose 4.3% to $1.46 after government figures in Australia yesterday showed retail sales rose 0.5% in May, more than twice the expected pace. The shares have climbed from a record low $1.27 on June 29.

Pumpkin Patch, the children’s clothing retailer, rose 1.2% to 88 cents.

"All those figures aren't translating into earnings but it could have some follow through to Kathmandu," said Grant Williamson, director at Hamilton Hindin Greene.

"We are seeing some bargain hunting in these stocks which have been aggressively sold down in recent times."

Fisher & Paykel Healthcare rose 1.5% to $2.05, having touched a nine-year low last month. Fisher & Paykel Appliances rose 0.9% to 56 cents.

The NZX gained 2.2% to $1.37. The stock exchange regulator today announced it will include a requirement for listed companies to disclose their gender diversity as part of the annual reports starting on December 31, subject to Financial Markets Authority approval.

OceanaGold, the operator of the Macraes goldfield, fell 2.3% to $2.53.

"The price of gold is volatile at the moment so a lot of these stocks have been following the price of gold," Mr Williamson said.

Rubicon, the forestry science and wood products investor, surged 17% to 28 cents after announcing it has completed its $21 million one-for-three rights issue, fully subscribed, with all shares taken up by existing shareholders at a slight premium to the issue price.

Sky Network Television, the pay-TV company controlled by News Corp, rose 2.1% to $4.93. Nuplex Industries, the specialty chemicals company, was up 0.8% to $2.62.

Telecom, the biggest company on the exchange, fell 0.2% to $2.49. Fletcher Building, the biggest construction company on the NZX 50, slid 0.6% to $6.22.

Pyne Gould was unchanged at 29 cents. The company, which is being investigated by the markets regulator over related-party loans, says no decision has been made on whether to relocate to the ASX and divest its Perpetual Trust.

The wealth manager halted trading in the 23% of its stock that isn't owned by managing director George Kerr and US hedge fund Baker Street Capital after Fairfax Media reported the plans.

Pyne Gould said the report was based on a leaked email.

DNZ Property Fund rose 0.7% to $1.47 after saying leasing transactions in the March quarter have increased its contracted annual rentals by 0.6% and lifted its weighted average lease term (WALT) to 5.6 years at June 30 from 5.4 years three months earlier.