New Zealand shares rose, pushing the S&P/NZX 50 Index to a record, as MightyRiverPower and Meridian Energy gained on the decision to keep the Tiwai Point aluminium smelter open until at least 2017. Trilogy International soared after forecasting a jump
New Zealand shares rose, pushing the S&P/NZX 50 Index to a record, as MightyRiverPower and Meridian Energy gained on the decision to keep the Tiwai Point aluminium smelter open until at least 2017. Trilogy International soared after forecasting a jump in first-half sales and profit.
The S&P/NZX 50 index advanced 36.89 points, or 0.6%, to 5957.85. Within the index, 27 stocks rose, 18 fell and five were unchanged. Turnover was $72 million.
Meridian climbed 3.1% to $2.32 after Rio Tinto-owned NZ Aluminium Smelter said it would keep open a smelter that consumes one-seventh of New Zealand's electricity and will pay closer to market rates. Mighty River Power gained 4.4% to $2.88. Among other power companies, Contact Energy gained 1.4% to $5.02, Genesis Energy rose 3.5% to $1.77 and Infratil-controlled TrustPower advanced 0.9% to $7.90.
"There has definitely been a relief rally as some of what would have been a negative has dropped away," said Shane Solly, portfolio manager at Harbour Asset Management. "The announcement today is good for New Zealand Inc and the gen-tailers."
Fonterra Shareholders' Fund, whose units are entitled to the dividends from the dairy company's shares, rose 2.6% to $4.80 ahead of the GlobalDairyTrade auction this week and the outcome of Fonterra's board meeting on Friday, which may include a fresh forecast for milk payments and the outlook for dairy prices, which have slumped from last year's highs.
"That's been very weak for some time and there ares people trying to pick a turning point there," Solly said. "The macro environment remains pretty tough for the dairy sector."
Fletcher Building rose 0.6% to $7.97 after the construction and building products group said it would merge its distribution units in Australia and New Zealand and was farewelling its chief information officer. Chief executive Mark Adamson is trying to revive the performance of the business in Australia, where a drop off in resources sector investment needs to be made up for by more spending on infrastructure, commercial and residential building.
Network operator Chorus rose 0.4% to $2.88 and Spark New Zealand gained 1.2% to $2.995.
Pacific Edge, which makes a test for bladder cancer, rose 5% to 63 cents, leading the index higher. Air New Zealand rose 1.9% to $2.69 and Auckland International Airport climbed 1.6% to $5.495.
Argosy Property led gains among some property investors, rising 1.8% to $1.135. Property for Industry rose 0.7% to $1.56 and Kiwi Property Group gained 0.4% to $1.385.
Retirement village operator Summerset Group Holdings rose 1.4% to $4.24 and rival Ryman Healthcare gained 0.5% to $8.44.
Trilogy jumped 24% to $1.18 after the skincare products and scented candle maker said first-half revenue is likely to exceed $23 million, a year-on-year increase of more than 50%, following strong growth across all three of its brands. Profit would rise to $3.5 million in the six months ending September 30, from $1.1 million a year earlier.
Cavalier Corp climbed 13% to 52c after the carpet maker announced plans to sell assets, outsource operations, cut staff and pay down debt in a bid to return to profitability.
Blis Technologies, which makes oral health remedies, dropped 8% to 2.3c after chief executive Barry Richardson said he will leave the probiotic manufacturer at the end of the current financial year after nine years in charge of the company.
(BusinessDesk)
