Market close: Share rise paced by Fletcher, Telecom, Skellerup

BUSINESSDESK: New Zealand shares rose to a 4½-year high, with Fletcher Building, Telecom and Skellerup Holdings gained ahead of results investors are betting will show local companies are resilient in a tepid economy.

The NZX 50 Index rose 26.64 points, or 0.7%, to 3687.73, the highest since February 2008. Within the index, 28 stocks rose, 13 fell and 9 were unchanged. Turnover was a smaller-than-average $80.9 million.

Fletcher, New Zealand largest construction company, gained 1.8% to $6.66. Its full-year results are set for release tomorrow and will show an 18% increase in sales and a 0.7% rise in earnings before interest depreciation and amortisation, brokerage Forsyth Barr says.

"Going into the result people have high hopes that they will meet guidance and provide an update on the Christchurch rebuild but it could go either way," says Mark Lister, head of private wealth research at Craigs Investment Partners.

"The bar is high. The more that share price goes up the less room there is for disappointment."

Telecom, the biggest company on the exchange, rose 2.4% to $2.80 and has gained about 30% this year.

It will post its full-year results on Friday and Forsyth Barr analyst Guy Hallwright has forecast a 14% increase in sales to $4.7 billion and a 37% rise in reported profit to $330 million.

Chorus, the telecommunications network operator spun out of Telecom last year, was unchanged on $3.25.

Skellerup, the rubber goods and milking equipment manufacturer, rose 2% to $1.53. Its full-year results will be released tomorrow. Forsyth Barr has forecast a 9.4% increase in sales and a 19.6% increase in reported profit.

New Zealand Oil and Gas was unchanged on 84 cents before its result. Forsyth analyst Andrew Harvey-Green has predicted an 8.5% increase in sales to $118.2 million and a 17% lift in earnings before interest, tax, depreciation and amortisation to $64.7 million.

The gainers were led by, Fisher and Paykel Appliances up 4.8% to 66 cents.

Summerset Group fell 4.1% to $1.87 even after the retirement village operator beat first-half profit estimates as it squeezed a fatter margin from its developments, which have largely been brought in-house.

Net profit was $3.9 million in the six months ended June 30, compared to a loss of $1 million a year earlier. The stock has gained about 45% this year.

Rival retirement operator Ryman fell 0.8% to $3.58. The stock has gained about 34% this year.

Ebos Group fell 1.9% to $7.90. The medical equipment and consumables distributor that expanded into pet products last year will continue to target growth in its animal health business after the acquisition of the Masterpet business helped lift annual profit by 19% to $27.9 million.

The decline was led by Kathmandu, the outdoor clothing retailer, down 3.4% to $1.72.

Sanford slipped 0.3% to $3.94. The US Justice Department said James Pogue, former chief engineer on Sanford's tuna vessel San Nikunau, faces up to 26 years in jail for obstruction of justice and knowingly failing to maintain an accurate oil record book.