Market close: NZ shares gain - Fletcher, Telecom pace advance

BUSINESSDESK: New Zealand shares rose, paced by the biggest companies on the bourse, Telecom and Fletcher Building, as investors were lured back to a market near a three-month low.

The NZX 50 Index rose 30.98 points, or 0.9%, to 3447.07. Within the index, 29 shares gained, 13 fell and eight were unchanged.

Turnover was a greater-than-average $171.5 million, with about $100 million of that made up of Telecom, Fletcher and Contact Energy.

"The last two days we have seen some bargain hunting coming into the market with blue chips stocks like Telecom and Fletcher," said Grant Williamson, director at Hamilton Hindin Greene.

Telecom, the biggest company on the bourse, rose 3% to $2.475. Fle3tcher, the nation’s biggest construction company, gained 2.3% to $6.29 and Contact, the biggest power company on the NZX 50, rose 1.9% to $4.78.

Shares in New Zealand’s largest retirement village operator, Ryman Healthcare rose 0.3% to 3.41, matching its record high set this month. The stock has gained 23 this year. In May the company rang in its tenth year of earnings growth as profit rose 17% to $84 million.

"It's one of the darlings of the market," Mr Williamson said. "They have such constant growth in their yearly earnings and investors can't see that changing."

Shares in rival retirement village operator Summerset Group fell 0.6% to $1.66.

Trade Me the online auction site controlled by Fairfax Media, that went public in December fell 2.5%to $3.56. the stock has surged 24% this year.

"They have had a fantastic run - it's not really surprising that the price is taking a correction given the speed at which it went up at," Mr Williamson said.

OceanaGold, which operates the Macraes gold field, fell 2.6% to $2.66 after rising 2.3% yesterday. The stock has seesawed along with the price of gold and the historically high New Zealand dollar.

Investment Research Group, the NZAX-listed financial advisory and media company, reported a wider full-year loss of $1.14 million in the 12 months ended March 31, from a loss of $1.02 million a year earlier on rising compliance costs and accounting adjustments.

Shares in IRG last traded at 0.3 cents, valuing the company at $1.6 million, and have shed 50% of their value this year.

Independent News & Media, the Irish parent of Australasia’s APN News & Media, is delisting shares which haven’t traded on the NZX since Sept. 28 2007 for $5.30.

INM will continue to list on the Dublin and London stock exchanges. The NZX delisting is effective from June 22.