MARKET CLOSE: NZ shares gain on Summerset sales growth, Nuplex vote

New Zealand shares rose yesterday as Summerset Group announced a jump in quarterly sales of occupation rights at its retirement villages and shareholders of Nuplex Industries voted in favour of the resins maker being acquired by Belgian company Allnex. Auckland International Airport climbed to a record.

The S&P/NZX 50 Index rose 30.28 points, or 0.4%, to 7007.51. Within the index 27 stocks rose, 17 fell and seven were unchanged. Turnover was $175 million.

Summerset rose 3.3% to $4.71. The Wellington-based company lifted occupation rights sales 28% to 185 in the three months ended June 30, the best quarter since the company was founded and said it expects a new village in the Auckland suburb of Ellerslie to underpin sales growth.

"Summerset gave good solid confirmation that the business is on track," said Shane Solly, a director at Harbour Asset Management. "The industry has had a very good growth path and this was re-confirmation they are at a continued rate of growth."

Ryman Healthcare rose 1.1% to $9.55 while Metlifecare fell 0.9% to $5.55.

Nuplex rose 1.7% to $5.27 after shareholders approved the sale of the company to Allnex for $1 billion. Independent directors had recommended shareholders accept the offer of $5.55 per share, which includes the 12c a share interim dividend already paid. That was a premium of 44% to the share price at the time the offer was made in February.

Michael Hill International jumped about 15% to $1.31. The listed jewellery chain that's shifting its primary listing to Australia, lifted annual earnings by as much as 5.9%, boosting sales across all its territories and opening new Emma & Roe stores.

"Michael Hill is guiding to the top end of expectations. same-store sales are pretty robust when a lot of retailers are struggling," Mr Solly said. "For the Australian institutions, Michael Hill is a new story."

Auckland Airport rose 1.6% to $6.99, a record-high close. Solly said there had been initial concerns post-Brexit that there could be some impact on travel from the UK which is one of the major sources of visitors to New Zealand. "But clearly, airlines and airports in this part of the world are more leveraged to Asia."

Trade Me, the auction website, rose 2.3% to $5 after positive research reports from brokerages.

A2 Milk rose 1.7% to $1.84. Mr Solly said sentiment has been lifted by reports that Danone is close to an agreement to acquire WhiteWave Foods in the US, in a deal reportedly valued at $US10 billion. 

Vector rose 1.8% to $3.33 and Fletcher Building gained 1.2% to $8.70. Fletcher said it is on the hunt for 100 British senior construction workers to prop up its workforce as a major pipeline of activity looks set to stretch the sector.

Westpac Banking Corp rose 2.3% to $29.87 and Australia & New Zealand Banking Group gained 1.3% to $24.28.

Fisher & Paykel Healthcare fell 1.5% to $10.13 and was the biggest to decline on the index, having reached a record $10.82 on June 1.

(BusinessDesk)