Market close: NZ shares rise as Chorus, OceanaGold rebound

BUSINESSDESK: New Zealand shares rose, led by OceanaGold and Chorus, as some investors were attracted back to companies after their recent declines. 

Fisher & Paykel Healthcare led gains among stocks that benefit from a weaker dollar.

The NZX 50 Index rose 9.583 points, or 0.3%, to 3569.05. Within the index, 22 stocks rose, 19 fell and nine were unchanged. Turnover was $127 million.

OceanaGold, the biggest gold miner on the bourse, gained 4.5% from a nine-month low to $2.56.

Like many gold miners around the globe, the company has suffered as the price of gold fell.

The stock's relative strength index sank to 16 yesterday on a scale where chart watchers say a reading below 20 mean it is poised to rise.

"Gold companies around the world have been getting pounded," said Mark Lister, head of private wealth research at Craigs Investment Partners.

"I see today they have a few buyers coming back. Gold companies have fallen more strongly than the gold itself."

Chorus, the network company split off from Telecom in November, gained 1.6% to $3.20.

It has tumbled from $3.57 last week before the regulator said it wanted a cut to the price Chorus charges other phone companies to use its lines.

"Chorus had a great run earlier in the year - a few people probably felt they missed the boat," Mr Lister said.

"It was probably oversold and people have had time to digest - so it has recovered on the back of that. The dividend yield on Chorus is still attractive."

Telecom rose 0.8% to $2.67, a new high since the spinoff. The biggest company on the bourse has a dividend yield of 11.6%.

Telecom said today that chief executive Paul Reynolds will leave the phone company at the end of June after overseeing the structural split of its network business last year.

His replacement, former Auckland International Airport boss Simon Moutter, doesn't start until September.

So Gen-I head Chris Quin, who put his hand up for the top job, will act as chief executive in the interim.

AMP, the Australian wealth manager, rose 2.5% to $5.28. the company said today that “very subdued cash flows” experienced in calendar 2011 have continued into the first quarter of this year.

Kiwi Income Property Trust rose 0.5% to $1.085. It has a dividend yield of 8.5%.

"Companies with a high dividend are attractive," Lister said.

Fletcher Building fell 0.5 percent to $6.16 and Contact Energy climbed 0.6 percent to $4.87.

F&P Healthcare, which gets more than 50% of its sales in US dollars, rose 1.3% to $2.30 as the kiwi dollar held below 79 US cents.