MARKET CLOSE NZ shares mixed as Chorus, Ryman, Blis, Turners gain, Hallenstein, AWF, Rakon fall

New Zealand shares were mixed, with the NZX 50 Index slipping as Hallenstein Glasson, AWF Group and Rakon fell while Chorus, Turners Auctions, Ryman Healthcare and Blis Technologies rose.

The NZX 50 Index climbed 13.104 points, or 0.3 percent, to 4914.075. Within the index, 13 stocks rose, 26 fell and 11 were unchanged. Turnover was $147 million.

"The index is flat, it has been in positive and negative throughout the day," said Bryon Burke, head of equities at Craigs Investment Partners. "World markets as well as the New Zealand market have all had quite good rallies generally and now we are just in a holding pattern and liquidity has dried up a little bit in some stocks. Barring the odd stock, the market is pretty flat."

Chorus was the third-best performer on the benchmark index, up 1.8 percent to $2.005 after Communications Minister Amy Adams said she had hired Ernst & Young Australia to investigate the company's financial position after the Commerce Commission ordered price cuts for access to the network operator's copper lines.

"There's certainly a game to play out in Chorus," said Burke. "The intraday changes now will be a lot less until we have more solid news, until we know whether the government is going to step in and change the current determination for the copper pricing. We have got a few punters coming in because they think it will be changed and other people taking money out because they don't - it's definitely in a holding pattern at this lower level at this stage until more news comes."

Ryman, the biggest retirement village operator on the exchange, rose 0.1 percent to $7.90, just shy of its $7.91 record close last week. Ryman had the biggest turnover on the NZX 50 today, with some $25 million of shares traded, and it chalked up the second biggest volume with 3.1 million of shares changing hands. Ryman will be added to the MSCI Global Standard Indices and removed from the Global Small Cap Indices at the close of Nov. 26, increasing demand for the stock by professional investors who track the global benchmark.

"It does appear to be overseas buyers buying Ryman at the moment," said Burke. "It is a fairly tightly held stock so when you get a bit of overseas flow then obviously they have got to pay up to get the shares."

Turners Auctions was the second-best performer on the NZX All Index, jumping 6.6 percent to $2.42 after the company said it expects annual profit to rise about 10 percent following better trading in the second half of the financial year. That's an improvement from the company's previous expectation in August that net profit would be close to the year earlier $4.2 million.

Blis Technologies was the third-best performer on the NZX All Index, up 6.3 percent to 1.7 cents after the maker of probiotic mouth and throat care products yesterday announced it had raised $4.3 million, bringing the benefit of shareholders connected to significant markets in Asia, the Middle East and China. The funds raised, at the top end of the company's $3.5-$4.5 million target, will allow it to continue attaining regulatory approvals in key markets and develop market channels.

Hallenstein Glasson was the third-worst performer on the NZX 50, shedding 10 percent to a 14-month low of $4.50 after the clothing retailer warned its first-half profit may fall by 23 percent with subdued sales in Australia and New Zealand. The company forecast first half profit would fall to about $8 million this year from $10.4 million a year earlier, after first quarter sales were 7 percent down from 2012.

AWF Group was the second-worst performer on the NZX All Index, dropping 10 percent to a seven-month low of $2.70 after the country's biggest supplier of temporary staff yesterday reported a 57 percent slump in first-half profit as its predicted growth in Christchurch didn't eventuate and it exited its Panacea Healthcare unit.

Rakon slid 4.4 percent to 22 cents after the company yesterday posted a wider first-half loss on impairments following the sale of its Rakon Crystal (Chengdu) unit and associated charges against its New Zealand operations. The net loss was $45.7 million in the six months ended Sept. 30, from a loss of $4 million a year earlier. The company reiterated its forecast for a full-year loss of $54 million.

Infratil was unchanged at $2.40 after the infrastructure investor said it will continue with a planned buyback worth as much as $64 million after putting the plan on ice last month while it mulled another transaction. Infratil plans to buy as many as 24.8 million of its own shares at a maximum price of $2.60 per share through a tender process open to all shareholders on Dec. 5. The company is undertaking the buyback in an attempt to lift the value of its shares closer to what it says is a more appropriate value.

(BusinessDesk)