MARKET CLOSE: NZ shares extend gain as Investore stags in latest listing

New Zealand shares extended their run of new records yesterday, led by real estate owner Investore Property which debuted on the local market after being spun out of Stride Property.

The S&P/NZX 50 index rose 17.01 points, or 0.2%, to 7079.46, a new record close. Within the index, 27 stocks gained, 17 fell, and seven were unchanged. Turnover was $148 million.

Investore jumped 8.1% to $1.61, leading the benchmark higher in its debut. The company raised $189 million at $1.49 a share in an initial public offering to help fund its acquisition of 14 Countdown supermarket sites. Stride demerged Investore, keeping a 19.9% stake and also issuing in the new company to its own shareholders. Investore will trade on the NZX 50 until at least September before the next portfolio update.

"The highlight has been Investore, which has gone on extremely well," said Matt Goodson, managing director at Salt Funds Management, which holds 7.4% of Investore. "The key thing that really seems to be attracting people is the very long WALT [weighted average lease term] of the portfolio."

Stride shares dropped 16% to $1.98, reflecting the Investore divestment, and was the biggest fall on the day.

Other stocks were buoyed by the rally in share markets across the region, with upbeat business confidence in Australia helping lift the SAP/ASX 200 index 0.5% in afternoon trading while the prospect of Japan's government further stimulating the economy drove the Nikkei 225 index up 2.6%.

The dual-listed Australian banks gained, with Australia & New Zealand Banking Group up 2.5% to $25.40 and Westpac Banking Corp rising 1.6% to $30.68.

Mr Goodson said a stronger Australian dollar helped New Zealand companies with exposure across the Tasman, which increases the value of export income from Australia. The kiwi fell to 95.70Ac at 5pm in Wellington from 96.19Ac yesterday.

Fletcher Building, which has operations in Australia, rose 1.4% to $8.89, while SkyCity Entertainment Group, which has casinos in Adelaide and Darwin, gained 1.8% to $4.65.

Port of Tauranga increased 0.3% to $19.65 after the Kotahi joint venture between Fonterra Cooperative Group and Silver Fern Farms said it was launching a new weekly service to Asian export markets through the Bay of Plenty hub, using a container ship with twice the capacity of usual vessels.

Kathmandu Holdings gained 3.1% to $1.69 after its biggest shareholder, Briscoe Group, said it would defend a $3.2 million claim for costs by the outdoor equipment chain. Kathmandu is seeking costs from the homeware and sports store retailer over last year's failed takeover bid. Briscoe shares rose 1.2% to $3.29.

Among stocks to fall, real estate investors Kiwi Property Group dropped 2% to $1.505, Goodman Property Trust was down 1.1% to $1.305, Property for Industry slipped 0.6% to $1.62, and Precinct Properties New Zealand decreased 0.4% to $1.245.

Sky Network Television fell 1% to $4.85 after a government paper on legislation regulating the telecommunications sector said the pay-TV operator's proposed merger with Vodafone New Zealand raised some questions about the safeguards to ensure "net neutrality," meaning all internet traffic is treated equally.

Chorus rose 0.9% to $4.31 with the review confirming the government's plans to bring the telecommunications network operator's regulated pricing in line with electricity lines companies. Spark New Zealand, Chorus's biggest customer, was unchanged at $3.82.

Outside the benchmark index, Turners climbed 5% to $3.15 after the financial services firm said it will buy Auckland used car importer and dealer network Buy Right Cars for $15.3 million in cash and scrip.

T&G Global shares jumped 8% to $2.70 after Chinese fruit exporter Golden Wing Mau Agricultural Produce bought a 19.99% stake in the New Zealand fruit exporter at $2.95 a share.

Methven was unchanged at $1.28. The tapware maker yesterday disclosed the founder of its Chinese manufacturing division sold his 5.85% stake for $5 million earlier this month at $1.17 a share, a discount to the $1.34 price they were trading at.

(BusinessDesk)