Market close: Shares rise, F&P Appliances leads gainers for third day

BUSINESSDESK: New Zealand shares rose, with Fisher & Paykel Appliances leading gainers for a third day after its biggest shareholder, Haier, detailed its offer to buy the remaining 80% of the company at a premium to recent trading.

Retailers Michael Hill International and the Warehouse Group were among the gainers.

The NZX 50 Index 44.76 points, or 1.2%, to 3789.71. Within the index, 36 stocks rose, seven fell and seven were unchanged. Turnover was a higher-than-average $152.8 million, with F&P Appliances, Fletcher Building and Telecom all trading heavily.

F&P Appliances rose 12% to $1.16, the highest since October 2008.

Qingdao-based Haier has gained the agreement of FPA’s second-largest shareholder, Allan Gray Australia, to sell its 17.46% stake into the offer. That means Haier only has to get about another 13% to win control of the Auckland-based manufacturer. It is offering $1.20 a share cash.

"It is sad to see an iconic New Zealand company disappear off the bourse," says James Smalley, client adviser at Hamilton Hindin Greene. "The Chinese have laid their cards on the table and the stock is trading like the bid is going to be successful."

PGG Wrightson, New Zealand's largest agricultural company and majority owned by Chinese investor Agria, rose 5.6% to 38 cents.

"You may have seen some buy-through in PGG after Fisher & Paykel because they have a Chinese-based shareholder. Investors may be hoping lightning strikes twice," Smalley said.

Michael Hill, New Zealand's only listed jewellery maker, rose 3.5% to $1.17 and has gained 32% this year. Warehouse Group was up 1.8% to $2.87.

Fletcher Building, New Zealand biggest construction company, rose 1.5% to $6.72. Auckland International Airport, the nation's major gateway, climbed 2.3% to $2.64.

The decline was led by New Zealand Oil & Gas down 5% to 85 cents after shedding its dividend The stock has climbed 31% this year. Founding chairman Tony Redford will step down after next month's annual meeting and will be replaced by fellow director Peter Griffins.

Trade Me, the online auction site controlled by FairFax, declined 1% to $3.95.

Vital Healthcare Property Trust, the NZSX-listed investor in health properties, rose 1.6% to $1.24. It sold its Pitman House site in Auckland’s Point Chevalier for $5.25 million. The settlement will take place on October 3.

The stock has gained about 11% this year.

Wool Equities, which develops and markets wool for its grower shareholders, shares were unchanged on 10.5 cents, valuing the company at $3.2 million. The Christchurch-based company doubled its annual loss to $1.7 million amid cut backs in the scouring sector.