Market close: NZ shares rise as kiwi falls, yields appeal

BUSINESSDESK: New Zealand shares rose as the kiwi fell to a four-month low, helping exporters such as Rakon, while Telecom rose to the highest since August 2008 on the appeal of its relatively attractive dividend yield.

The NZX 50 Index rose 7.40 points, or 0.2%, to 3559.47. Within the index, 24 stocks rose, 18 fell and eight were unchanged. Turnover was $125.8 million.

Rakon, which makes components for navigation systems and smart phones, rose 3.8% to 55 cents, the highest close in about two months.

The New Zealand dollar fell to 78.43 US cents at 5pm from79.29 cents yesterday as concern Greece will struggle to form a government after elections hurt growth-linked currencies.

The Reserve Bank said in its financial stability report today that the kiwi may fall further as risk sentiment and commodity prices drop.

Rakon "is up after a long period of bad days - they are a prime beneficiary of the weaker New Zealand dollar", said Shane Solly, portfolio manager at Mint Asset Management.

Telecom, the biggest company on the bourse, rose 3.1% to $2.65. The phone company has a dividend yield of 11.5%, more than twice the two-year term deposit rate offered by trading banks, according to the interest website.

"New Zealand is the only market in Asia Pacific that is up on the day and that has really been driven by Telecom and yield junkies," Mr Solly said.

OceanaGold, the operator of the Macraes gold field, fell 7.6% to $2.45. Spot gold fell as much as 1% to $US1589.48 an ounce, the lowest price since January 3, according to Bloomberg.

Port of Tauranga declined 2.4% to $11.08, having reached a record close of $11.50 at the start of the month.

Chorus, the network company spun off from Telecom in November, fell 0.6% to $3.15.

The stock has tumbled from $3.57 last week, when the regulator said in a preliminary recommendation that it wants Chorus to cut the price it charges for access to its lines.

Chorus "has come to levels that reflect the uncertainty", Mr Solly said.

Sky Network Television, the nation's dominant pay-TV company, fell 0.6% to $5.48.

Quickflix, the ASX-listed supplier of streaming and online movies and television shows, said in a submission on the Commerce Commission's investigation into the drivers of broadband uptake that Sky's content arrangements will hold back demand for ultrafast broadband.

The Sydney-based company can't offer certain content to New Zealand subscribers that it can sell on the other side of the Tasman due to Sky's exclusive premium content arrangements.

Quickflix scotched suggestions by Sky that video content won't be a major driver as "illogical and highly unlikely”.

Methven, the tapware maker, fell 5% to $1.14. Nuplex Industries, the specialty chemicals company, fell 0.4% to $2.60.

Fletcher Building declined 0.5% to $6.19 and Contact Energy fell 1.2% to $4.84.