Market close: shares rise, Fletcher gains with Australian home sales

BUSINESSDESK: New Zealand shares rose, paced by Fletcher Building, after figures showed new home sales jumped in Australia, its second-largest market.

Westpac Banking Corp and AMP were among stocks linked to the Australian market that gained as the S&P/ASX 200 Index rose.

The NZX 50 Index rose 16.03 points, or 0.5%, to 3478.29. Within the index, 16 stocks rose, 19 fell and 15 were unchanged. Turnover was $92.7 million.

Fletcher, the nation’s biggest construction company, rose 1.8% to $6.25 after Australian Housing Industry Association figures showed new home sales climbed 6.9% in April, rebounding from a month-earlier decline and stoking optimism the housing market is on the mend.

"Fletcher Building is showing signs of recovery on the back of better data out of Australia," said Rickey Ward, domestic equities manager at Tyndall Investment Management.

“Anything that is dual listed is getting support, particularly the banks."

Westpac gained 1.5% to $26.60 on the NZX and Australia & New Zealand Banking Group rose 2.2% to $27.10. AMP gained 1.6% to $5.05. In Sydney, the S&P/ASX 200 was up 1% in afternoon trading.

Fisher & Paykel Appliances was the biggest gainer on the benchmark index, rising 3.9% to 54 cents. Vector, the gas and electricity lines business, rose 2.3% to $2.73.

Skellerup rose 2.1% to $1.45 and Freightways climbed 1.3% to $3.90. Telecom, the biggest company on the exchange, rose 1.6% to $2.58.

Rakon led declining stocks, falling 4.1% to 47 cents. Cavalier, the carpet and wool scouring company, fell 1.3% to $1.50.

Infratil fell about 1% to $2.08 and jeweller Michael Hill International fell 1% to $1.02.

Guinness Peat Group, which is winding up its investment portfolio, fell 1% to 48 cents. Trade Me Group, the auction site spun off by Fairfax Media, fell 1% to $3.91.

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Market close: shares rise, Fletcher gains with Australian home sales