Market close: NZ shares hit highest level since May 14

BUSINESSDESK: New Zealand’s NZX 50 Index rose to the highest in more than two months, led by Telecom, Ryman Healthcare and Fletcher Building on optimism that central bank meetings in Europe and America will help stimulate global growth.

The NZX 50 index rose 26.12 points, or 0.74%, to 3545.01, the highest level since May 14. Within the index, 27 stocks gained, 11 fell and 12 were unchanged. Turnover was $108 million.

"Our companies are performing pretty well and New Zealand isn't a bad place to invest when you look at the global scene," said Michael Milne, investment adviser at Craigs Investment Partners.

"We are all optimistic heading into earnings season that our companies won't do too badly."

Telecom advanced 1.9% to $2.66 and Ryman Healthcare gained 1.7% to $3.66.

The retirement village builder and operator announced its quarter trading is ahead of last year and it plans to build its 28th retirement village unit in Petone in the Hutt Valley. The stock has gained 31% so far this year.

Shares in rival Summerset Group, who listed in November, rose 2.7% to an all-time high of $1.92. The stock has gained 38% to far this year.

"People want exposer to the sector," Mr Milne said. "Ryman and Summerset are the way to it – they are stellar performers."

Local stocks also got a boost after figures showed Australia’s economy isn’t as dire as feared. Australian approvals to build new homes in June fell 2.5%, less than the 14.2% slide forecasted in a Reuters' survey.

Fletcher Building, the biggest construction company on the bourse, rose 1.5% to $6.11 "on the back of the Australian data", Mr Milne said

Shares in New Zealand Oil & Gas gained 1.2%t to 81 cents. Investors' ignoring news the company has barely a month to find partners to help meet the cost of exploratory drilling in its deep-sea Barque prospect, off the Canterbury coast.

The gain was led by Kathmandu, the outdoor clothing retailer, up 5.3% to $1.59.

NZX fell 0.85% to $1.17. The stock exchange operator yesterday flagged smaller first half earnings, signalling expenses of between $2 million and $3 million after a CEO transition and the Clear grain exchange litigation.

PGG Wrightson was the biggest decliner on the NZX50, down 3.13% to 31 cents.