MARKET CLOSE: NZ shares up - Rakon and Sky TV gain, SkyCity falls

BUSINESSDESK: New Zealand shares rose, pushing the NZX 50 Index to the highest since mid-March.

Sky Network Television rose after being exempted from a telecommunications charge while Sky City Entertainment fell amid calls for the government to abandon a conference centre deal.

The NZX 50 rose 2.432 points, or 0.1%, to 3525.192. Within the index, 27 stocks rose, 12 fell and 11 were unchanged.

Turnover was a below-average $84.5 million.

Rakon, which makes components for navigation systems, rose 4.2% to 50 cents.

The stocks is rated "hold" based on the consensus of recommendations in a Reuters survey, with a price target of 62 cents.

Sky TV, the nation's dominant pay-TV company, rose 0.4% to $5.35.

It won't have to contribute to an annual government levy that is to fund non-commercial telecommunications, based on the Commerce Commission’s provisional view on which companies will be liable.

The anti-trust regulator excluded Sky from potential liability to pay the Telecommunications Development Levy in its 2012 draft notification, released today.

That means Sky, which is 44% owned by News Corp, won’t contribute to the fund which replaced the Telecommunications Service Obligation (TSO).

Sky City fell 1.8% to $3.82.

The casino and hotel operators is hoping to clinch a deal with the government to build a $350m convention centre in Auckland in exchange for a law change allowing it to run more slot machines.

The Labour opposition has called for the project to be re-tendered.

"I think investors will be hopping it goes through - it's a win-win for the tourism industry and the company," said Grant Williamson, director at brokerage Hamilton Hindin Greene.

It was a mixed day for retailers. Children's clothing chain Pumpkin Patch fell 2.8% to $1.05, the biggest percentage decline on the benchmark index.

Kathmandu, which sells outdoor and camping equipment, rose 1.8% to $1.68.

Xero, which sells a cloud-based accounting system, rose 1.9% to $3.85, bringing its gains this year to 37%.

The stock has climbed from $2.50 a year ago.

Auckland International Airport, the nation's busiest gateway, fell 1.2% to $2.53 and Air New Zealand, the national carrier, gained 1.2% to 88 cents.

Among the largest stocks, Contact Energy rose 0.2% to $4.91, Fletcher Building fell 0.2% to $6.28 and Telecom was unchanged at $2.53.