Market close: shares rise – Fonterra up before results, Ryman gains

New Zealand shares rose, with units of the Fonterra Shareholders' Fund gaining ahead of company's interim results tomorrow, while Ryman Healthcare, rated outperform by analysts, rose to a record.

The NZX 50 Index rose 5.29 points, or 0.1 percent, to 4346.02. Within the index, 23 stocks gained, 20 fell and seven were unchanged. Turnover was $117 million.

Fonterra units rose 1.4 percent to $7.05, having slipped 3.6 percent this year. Investors will be looking for comments from the nation's biggest company on the outlook and its ability to meet prospectus forecasts in the face of a drought that is already curbing output this season.

"The outlook statement will be the most important," says David Price, a broker at Forsyth Barr. "The period post-January is where things have started to really derail from the drought."

Fletcher Building, the nation's biggest construction and building products company, fell 3.2 percent, or 27 cents, to $8.31 after shedding its 17 cent interim dividend.

Chorus, the network company spun off from Telecom in 2011, fell 2.7 percent, or 8 cents, to $2.86 after going ex-dividend for its 10 cent interim payment. Telecom edged up 0.5 percent to $2.225.

"Across the board, values are looking a little stretched on historic measures," Mr Price says.

Abano Healthcare Group, rose 2.3 percent to $6.70 after the specialty health clinic investor forecast sales of $207 million to $209 million for the 12 months ending May 31, from $206.4 million a year earlier.

The company sold its Abano Rehabilitation unit in June last year and this year has focussed on expanding in dentistry with the acquisition of 22 practices bringing the total in its transTasman network to 139.

It has three more expected to settle before the financial year end though several more have been pushed over into next year.

Ryman climbed 3.3 percent to a record close of $4.96. The retirement village operator is rated 'outperform' based on a Reuters survey of six analysts. Rival rest home company Summerset Group rose 1.2 percent to $2.59. Metlifecare gained 1.3 percent to $3.17

Fisher & Paykel Healthcare rose 3.1 percent to $2.63 and Heartland bank gained 2.6 percent to 78 cents.

Michael Hill was the biggest decliner, falling 5.2 percent to $1.29.

(BusinessDesk)