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Market close: NZ shares rise for first day in three


New Zealand shares rose for the first time in three days, as Pumpkin Patch gained on plans to sell children's clothing via Amazon, and Fletcher Building fell on concern Australia's home-building market remains weak.

Wed, 04 Apr 2012

BUSINESSDESK: New Zealand shares rose for the first day in three, as Pumpkin Patch gained on plans to sell children's clothing via Amazon, and Fletcher Building fell on concern Australia's home-building market remains weak.

The NZX 50 Index rose 7.33 points, or 0.2%, to 3480.42. Within the index, 28 stocks rose, 13 fell and nine were unchanged.

Turnover was $105.6 million.

Pumpkin Patch gained 9.8% to $1.12. The children's clothing chain closed unprofitable stores in the US and the UK, taking charges that pushed it to a first-half loss.

Today, the company said it has teamed up with online retailer Amazon to sell its products in Britain, France and Germany.

It expects the arrangement to generate "noticeable" earnings starting in 2014.

"The international division was its biggest problem and they have retrenched back to what they do best in New Zealand and Australia," said Mark Lister, head of private wealth research at Craigs Investment Partners.

The company is targeting international sales "in a different way and in line with the trend to sell things online. At some point we need to see all the things they are doing translated into profit".

Among other retailers, Michael Hill International rose 4% to $1.05 and Hallenstein Glasson Holdings fell 0.5% to $4.

Warehouse Group, the biggest retailer on the bourse, rose 1.1% to $2.71.

NZ50 Index heavyweights Telecom and Contact Energy rose 0.8% to $2.47 and gained 1.1% to $4.68, respectively.

Rakon led decliners on the index, with the GPS components maker falling 4% to 48 cents.

Fletcher, the nation's biggest construction and building products company, fell 3.6% to $6.24.

Lister said large lines of the stock traded in the past couple of sessions suggest a large investor has been trimming its holding of Fletcher, which posted a drop in first-half earnings and signalled no growth in its full year.

"I think there has been a few analysts in the market taking a more conservative view and things are still difficult in Australia," he said.

Fisher & Paykel Healthcare, which sells respirators to the medical sector and gets more than half its revenue in US dollars, gained 1.4% to $2.25.

The kiwi dollar fell to 81.60 US cents from 82.33 cents yesterday.

Shares in Ecoya were unchanged at 95 cents after the scented candle and skincare products maker said it beat annual sales forecasts by 10%.

The Auckland-based manufacturer said revenue was about $22 million, beating the $20 million flagged at the half-year result, when it indicated it will reach profitability by the year’s end.

Comvita was unchanged at $2.60 after the honey products maker said its restructuring its business in preparation to expand its global operations.

Chief executive Brett Hewlett said the new structure underpins the importance of maintaining a strong link between the supply-end and demand-end of the chain.

Shares in Turners & Growers were unchanged at $1.70 after the company’s new chief executive Geoff Hipkins told BusinessDesk he will be meeting with Zespri bosses in a bid to thaw relations which were strained under Guinness Peat Group’s ownership.

NZX was unchanged at $2.81 after the stock exchange operator’s latest operating metrics showed a 1.1% decline in the value of trading across debt and share markets last month, even as the volume of trading increased.

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Market close: NZ shares rise for first day in three
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