Market close: NZ shares mixed – Diligent gains, GFF drops

BUSINESSDESK: New Zealand shares were mixed, with the NZX 50 Index eking out a 0.04% gain as Freightways and Diligent Board Member Services extended their advance and Goodman Fielder fell after giving guidance.

The NZX 50 Index rose 1.65 points from the lowest level in almost three weeks to 3465.36. Within the index, 19 stocks fell, 17 rose and 14 were unchanged. Turnover was a lower-than-average $74 million.

Investors are looking ahead to earnings season amid optimism the local economy hasn’t suffered as much as the rest of the world from the woes in Europe and tepid growth in the US.

OceanaGold, which will be among the first to report, gained 1.7% to $2.35 today.

"It is an interesting time for New Zealand companies – they are getting their financials in order at the balance sheet level,” said Shane Solly, portfolio manager at Mint Asset Management.

“In the grand scheme of things we are not as concerned as in other parts of the world."

Diligent rose 1.8% to $3.97 and has soared 102% this year. The software company joined the NZX 50 in June along with cloud-based accounting platform provider Xero, replacing struggling GPS-components maker Rakon and building supplies manufacturer Steel & Tube.

Shares in Xero fell 0.4% to $5.50, having gained 100% this year.

Freightways, the courier and data management company, gained 1.8% to $3.88. Telecom, the largest company on the exchange, gained 1.2% to $2.54.

Auckland International Airport, rose 1.2% to $2.45 after it flagged an 11% increase in international arrivals in the month of June over the same month last year.

The decline was led by Goodman Fielder, the food ingredients manufacturer whose brands include Edmonds baking products and Vogel’s bread, falling 6.2% to 61 cents.

The Sydney-based company today confirmed its 2012 earnings will be at the lower end of the $A230 million to $A245 million guidance it gave in February, subject to trading conditions.

"It's unwelcome news at the best of times," Mr Solly said. "Was the writedown enough – that is what the market will be asking."

Fletcher Building, New Zealand's largest construction company, fell 0.3% to $5.81.

Trade Me, the online auction site, shed 1.6% to $3.61.

Pyne Gould tumbled 7.4% to 25 cents. Torchlight Fund No 1 LP, an entity controlled by Pyne Gould managing director George Kerr, has repaid $9 million owed to Pyne Gould’s Perpetual Cash Management Fund. The shares have dropped 21% this year.