MARKET CLOSE NZ shares rise, led by Metlifecare, Synlait after being added to MSCI Indices

New Zealand shares rose, led by retirement developer and operator Metlifecare and milk processor Synlait after MSCI announced the stocks be added to its Global Small Cap Indices at the close of Nov. 26, increasing demand for the stock by professional investors who track the global benchmark.

The NZX 50 Index rose 28.670 points, or 0.582 percent, to 4,951.361. Within the index, 22 stocks rose, 23 fell and five were unchanged. Turnover was $199.4 million.

"The big news today has been the MSCI changes announced in New Zealand," said James Lee, head of institutional equities at First NZ Capital. Metlifecare was the best performing stock on New Zealand's benchmark NZX 50 Index today, jumping 6.7 percent to $4.45. Synlait Milk was the top performer on the NZSX All Index, surging 8 percent to $3.79.

SkyCity Entertainment Group recorded the biggest volume on the NZX 50 today, with 16.54 million shares changing hands, and the biggest turnover with trades worth $64 million. The stock fell 2.5 percent to $3.87 after MSCI said it would be removed from its Global Standard Indices later this month.

In other changes, Ryman Healthcare, which will be added to the MSCI Global Standard Indices and removed from the Global Small Cap Indices, was unchanged at $7.90.

Seven New Zealand stocks were added the MSCI Global Small Cap Indices and one deleted. Of those added, Metlifecare and Synlait jumped, Argosy Property gained 2.2 percent to 94 cents, Kathmandu Holdings slipped 2.8 percent to $3.77, MightyRiverPower increased 0.5 percent to $2.20, SkyCity Entertainment Group fell and Z Energy fell 0.3 percent to $3.83.

Six New Zealand stocks were added to the MSCI Global Micro Cap Indices and three were removed. Of those added, AWF Group was unchanged at $3.02, Dorchester Pacific was unchanged at 23 cents, Opus International Consultants slipped 1.5 percent to $1.97, SLI Systems gained 2.6 percent to $1.97, Smartpay Holdings was unchanged at 33 cents and Wynyard Group fell 1.6 percent to $1.20. Of stocks that were deleted, Ebos Group fell 0.4 percent to $9.56, Kathmandu declined and Property for Industry gained 1.2 percent to $1.315.

Telecommunications network operator Chorus fell 4.8 percent to $2 as investors aired their disappointment over the government's response to regulated price cuts of the network operator's copper network. Communications Minister Amy Adams yesterday announced plans for an independent appraisal of Chorus's books.

The stock is having "a wild ride", said First NZ's Lee. "It's a political outcome, we will have to wait and see how it pans out."

Cloud accounting service Xero continued its run, adding 3.6 percent to $35.21 on optimism about its US growth plans.

Telecom Corp, New Zealand's largest telecommunications company, added 2.8 percent to $2.35 after the company said it will offer one-off performance equity grants to chief executive Simon Moutter and other senior managers over the next three years to incentivise them to boost profits.

Warehouse Group, the country's biggest listed retailer, slipped 2.3 percent to $3.80 after the company boosted first-quarter sales 51 percent as its Noel Leeming and Torpedo7 acquisitions added to revenue, though margins at its flagship Red Sheds brand came under pressure.

(BusinessDesk)