Market close: shares rise as Tower, Fletcher recover - OceanaGold falls

New Zealand shares rose as Tower recovered from its post-quake decline and Fletcher Building gained from its recent slide. OceanaGold fell after reporting a second-quarter impairment tied to the price of gold.

The NZX 50 Index rose 5.194 points, or 0.1 percent, to 4581.99. Within the index, 22 stocks rose, 19 fell and nine were unchanged. Turnover was $93 million.

Tower, the general insurer, rose 2.2 percent to $1.88, recovering some of the ground shed at the start of the week when a magnitude 6.5 earthquake shook Wellington and sparked concerns about a rush of insurance claims.

Fletcher Building, the biggest company on the NZX 50, rose 0.5 percent to $8.31.

The benchmark index is heading for a monthly gain of more than 3 percent, which Mint Asset management portfolio manager Shane Solly says reflects a reduction in concerns the US Federal Reserve will remove its stimulus of the world's biggest economy too soon.

"We've had a pretty strong rally, from being pretty weak last month."Investors are preparing for earnings season and "we've not seen a whole bunch of confessions come through yet", he says, referring to companies warning they would miss estimates.

Fonterra Shareholders' Fund, which warned yesterday that earnings would not meet its prospectus forecast because of drought in the first quarter, rose 0.8 percent to $7.33 today.

Kathmandu, the retailer that counts Australia as its largest market, fell 1.9 percent to $2.63 and Brisbane-based jewellery chain Michael Hill International declined 0.8 percent to $1.26 amid continued concern about a weaker economy and fierce retail rivalry across the Tasman.

"Companies with Australian business will point at it as a weak point in their activities," Mr Solly says.

The Reserve Bank of New Zealand saying this week that it will need to end stimulus and hike interest rates in 2014, while its Australian counterpart is seen lowering rates, highlights the differences between the two economies, he says.

OceanaGold, the operator of the Macraes gold field, fell 2.9 percent to $1.99. The company has declared a $US70.5 million net loss in the second quarter, reflecting a $US85.5 million non-cash writedown in the carrying value of its New Zealand gold mining operations.

SkyCity Entertainment Group rose 0.2 percent to $4.21 after the South Australian state government approved a law change that will give the casino and hotel group greater and longer gaming concessions and more slot machines.

"There were no surprises there but nonetheless it is very important," Mr Solly says. "At this early stage it appears to be on time and in line with expectations."

Steel & Tube Holdings, which sells steel building materials, rose 4 percent to $2.60, leading the index higher.

Telecom was unchanged at $2.345 and network company Chorus gained 1.1 percent to $2.77.

(BusinessDesk)