Market close: shares creep up despite weak China, US and gold

New Zealand stocks eked out small gains in trading at the start of the new week, reflecting weaker than expected economic data from both China and the US, although gold miners suffered most as the metal's price continued to fall.

The NZX50 Index of the top 50 companies rose 18.941 points, or 0.427 percent, to 4,454.710. Within the index, 32 stocks rose, 10 stocks fell rose, and eight were unchanged. Turnover was relatively light at $102.2 million.

"Markets have run quite aggressively on increased monetary stimulus," says Shane Solly at Mint Asset Management, so weaker than anticipated data from two major economies had seen Australian and Asian markets falling today.

Gold prices had also continued to fall as investors took a broader view that major developed economies would now experience some economic recovery, following the Bank of Japan's decision to join the ranks of central banks printing money to reflate moribund, First World economies.

OceanaGold Corp took a 9.31 percent "thrashing", as Mr Solly put it, closing at $2.63 per share, while Glass Earth Gold, which announced an $11.1 million loss for the 12 months to December 31, was down 11.54 percent to 11.5 cents a share.

Glass Earth reported to investors that its future plans depended on revenues from placer mining (dredge and washing operations) and ongoing willing of capital markets to fund its strategy to find greenfields opportunities to bring to market for larger players to help develop.

Among gainers on the day was Property for Industry, which announced a merger with unlisted Direct Property Fund to double its size and create an NZX-listed industrial property fund with assets of around $800 million.

PFI shares were up 3.37 percent to $1.38.

"That got people excited," says Mr Solly, although he would reserve judgment on the merger ration until two independent reports - one for the PFI board from Deloitte and one for shareholders from PricewaterhouseCoopers - are released.

The proposal sees DPF shareholders receiving 123.22 PFI shares for every one DPF share.

Retirement operator Summerset also had a good day, up 3.65 percent to $2.75 after announcing it has completed due diligence and will proceed with a $100 million development in Lower Hutt.

(BusinessDesk)