MARKET CLOSE: NZ shares gain, pushing NZX 50 to month-high

BUSINESSDESK: New Zealand shares rose as global jitters over Spain's debt eased and investors renewed their interest in companies that slipped in NZX index reweightings, such as Sky Network Television and Contact Energy.

The NZX 50 rose 42.21 points, or 1.2 %, to 3522.76, the highest close since March 15. Within the index, 27 stocks rose, 12 fell and 11 were unchanged.

Turnover was $92.5 million.

Sky TV, which has increased its market dominance by partnering with phone companies, rose 2.5% to $5.33.

The stock has fallen 1.9% this year, lagging behind the NZX 50's 6.2% gain.

Contact rose 2.7% to $4.90, having dropped 9.5% this year.

Sky and Contact were given lower weightings in indexes because NZX now excludes major locked-up holdings - News Corp's and Origin Energy's respectively.

"Sky TV and Contact have been lagging the market due to the index announcements," said Bryon Burke, head dealer at Craigs Investment Partners.

"There is a return of the positive tone, we have obviously had a couple of days of pull backs," he said.

"Some investors there looking for stocks - they are buying across the broader market today not just the leading stocks."

Stock markets across Asia gained in afternoon trading with Hong Kong’s Hang Seng index up 1.2% and Japan’s Nikkei 225 Index rising 2%.

Global sentiment has been lifted by the IMF raising its forecast for global economic growth 0.2 percentage points to 3.5% in 2012.

Demand for Spain debt soothed concerns about the eurozone's debt crisis.

Heartland New Zealand led the market higher, gaining 5.3% to 60 cents.

The building society released third-quarter figures after the close of trading yesterday and said it managed to cut costs and widen its margins. Its lending book grew $2.09 billion from $2.08 billion at the start of the quarter.

Heartland had "a very strong gain after the result yesterday - it is looking pretty good", Mr Burke said.

AMP NZ Office rose 1.1% to 94 cents after saying it plans to spend $50.4 million on two buildings near the capital city’s Beehive and Parliament.

The commercial property investor has agreed to buy Wellington’s Bowen State and Charles Fergusson buildings from Capital Properties (Wellington), a member of the AMP Capital Property Portfolio.

The price reflects an initial yield of 10.7% and represents a 10-year internal rate of return on an "as-is" basis of 10.3%, it said.

Allied Farmers rose 2.6% to 4 cents.

McGrathNicol’s Andrew Grenfell, receiver for its failed Allied Finance unit, said Treasury has been undertaking due diligence and is in preliminary negotiations over a potential sale and purchase agreement, according to his fourth receiver’s report.

A2 Corp was unchanged at 50 cents after the promoter of milk with a variant protein said it had retained corporate advisers Greenhill Caliburn to undertake a strategic review after being approached by would-be partners.

Auckland International Airport rose 2.4% to $2.56.

The nation's busiest gateway has heralded two agreements this week that are likely to yield more passenger traffic with China and Indonesia.

Sky City Entertainment Group, which is hoping to clinch a controversial deal with the government to build a national convention centre in return for being allowed to operate more gaming machines, rose 1.8% to $3.89.

NZ Oil & Gas was the biggest decliner on the NZX 50, falling 1.3% to 77 cents.