MARKET CLOSE: Shares rise; Genesis, Contact, MRP gain

New Zealand shares rose, paced by Genesis Energy, Contact Energy and MightyRiverPower in a relief rally as Meridian Energy's installment came due.

The NZX 50 Index rose 12.334 points, or 0.2%, to 5772.71. Within the index, 21 stocks rose, 20 fell and nine were unchanged. Turnover was $98.7 million.

Genesis rose 1.1% to $1.90. Contact advanced 1.1% to $5.70. MRP gained 1.4% to $2.88. The energy companies had been sold off as investors looked to raise cash before Meridian Energy's installment receipt comes due this month. When Meridian listed on the NZX in October 2013, the shares were offered in a two-payment installment receipt process to sweeten the offer for small investors, with $1 upfront and the promise of full entitlement to dividends and the remaining 50c due this month.

"The pressure that had come from people selling to take up Meridian might be off now," said James Smalley, a director at Hamilton Hindin Green said. "It's a release of some selling pressure there."

Meridian Energy fell 1.3% to $2.35. The state-controlled energy generator and retailer received 98% in installment receipts with the first round of share transfers due this Thursday. The 2% that wasn't paid is now being sold into the market and to institutional investors, Smalley said.

Companies with transtasman exposure climbed on the back of weakness in the kiwi dollar against its Australian counterpart, Smalley said. Fletcher Building, the construction and building supplies firm, rose 1.3% to $8.71. SkyCity Entertainment Group, the Darwin and Adelaide casino operator, advanced 0.7% to $4.26. A2 Milk Co, which earns most of its income in Australia marketing its milk, was the best performer on the benchmark index, climbing 2% to 51c.

Kiwi Property Group last traded at $1.285 before being put in a trading halt as it looks to raise $151.9 million in a share offer to help fund the expansion of its Sylvia Park shopping mall. The country's biggest listed property investor increased annual earnings 4.5% to $79.7 million as it benefited from lower costs after bringing management in-house.

Fellow property investors fell, in part as the market looked to raise cash for the capital raise, Mr Smalley said. Property For Industry was the worst performer on the benchmark index, down 1.9% to $1.54. DNZ Property Fund declined 1.5% to $2. Argosy Property fell 1.4% to $1.10. Precinct Properties NZ slipped 1.8% to $1.105. Goodman Property Trust fell 0.9% to $1.15.

NZX rose 0.9% to $1.14. The stock market operator has tapped Aaron Jenkins to head up its expanded funds management business, with Mark Peterson to fill his vacated role as head of markets.

Spark NZ, formerly Telecom, was unchanged at $2.89.

Outside the benchmark index, Wynyard Group advanced 5.8% to $1.84 after the security software firm said it sees annual revenue growing as much as 73% this year as it presses ahead with a number of contracts and gets closer to finalising a major distribution agreement in law enforcement markets. The Auckland-based company expects revenue of between $40-45 million in calendar 2015, up from $26 million last year.

On the New Zealand Alternative Index, Cooks Global Foods dropped 7.1% to 13c. The coffee chain said it expects to open 150 Esquire Coffee stores in China in the next five years, after entering a joint venture with Chinese retail and property investor BuBuGao (Better Life) Group.

(BusinessDesk)