Market close: shares gain as risk appetite lifts - Xero, Diligent, Ryman rise

New Zealand shares rose, paced by some of this year's strongest performers such as Xero, Diligent Board Member Services and Ryman Healthcare, amid signs investors are regaining their appetite for risk as US earnings season generally does not disappoint.

The NZX 50 Index rose 15.735 points, or 0.3 percent, to 4554.041. Within the index, 29 stocks rose, 13 fell and eight were unchanged. Turnover was a lower-than-average $58.5 million, with some trading operations disrupted by the Wellington earthquake.

OceanaGold, the operator of the Macraes gold field, climbed 5.6 percent to $1.90, leading stocks higher as spot gold rose above US $1,300 an ounce to a month high.

Xero, which last week said it was not holding on to any information that could explain its recent drop, rose 2.3 percent to $17.39. Diligent, which faced the same inquiry from NZX regulators last week, gained 1.6 percent to $6.40.

Ryman, the biggest retirement village operator on the bourse, rose 1.5 percent to $6.98.Rival Summerset Group gained about 1 percent to $3.05.

"There's indications globally the mood has picked up," says Greg Easton, an adviser at Craigs Investment Partners. He pointed to the CNN Money fear and greed index, which was last at 68 - signalling 'greed' - up from 27 a month ago, which signalled 'fear'.

"All eyes are offshore and US earnings are generally flowing pretty well," Mr Easton says. IBM, General Electric, Citigroup and Goldman Sachs are among US companies to have posted stronger earnings.

NZX, the market operator, rose 1.5 percent to $1.35 after saying its operations had not been hurt by the earthquake, which rattled its Wellington head office.

DNZ Property Fund, which was among property investors to advise today that it came through the quake unscathed, rose 0.6 percent to $1.66. Property for Industry led declining property companies, falling 2.1 percent to $1.39. Argosy Property declined 1 percent to 96 cents and Precinct Property Trust dropped 0.9 percent to $1.06.

TrustPower, which holds its annual meeting on Friday, gained 2.1 percent to $7.39.

Tower, the general insurer, fell 3.7 percent to $1.83 amid speculation it will face claims as a result of damage from the swarm of quakes off the coast of Seddon in the upper South Island.

"There will be a long list of claims, no doubt," Mr Easton says.

Outdoor equipment retailer Kathmandu fell 2.2 percent to $2.64.

Fletcher Building, which would pick up sales and potentially construction work after quake damage, edged up 0.2 percent to $8.50. Telecom rose 1.1 percent to $2.315.

NZ Oil & Gas rose 1.8 percent to 84.5 cents and Skellerup Holdings rose 1.5 percent to $1.38.

(BusinessDesk)