MARKET CLOSE: Shares rise; Nuplex, Air NZ, Mainfreight up on cheap oil

Nuplex Industries climbed to a four-year high after it upgraded its profit guidance. Freightways, Mainfreight and Air New Zealand advanced as cheaper global oil prices meant lower input costs.

The NZX 50 Index rose 21.972 points, or 0.4%, to 5760.376. Within the index, 22 stocks rose, 16 fell and 12 were unchanged. Turnover was $99.4 million.

Nuplex extended its gains, rising 3.4% to $3.69, its highest level since February 2011. The specialty chemical maker lifted guidance for its full-year earnings on the back of strong performance in Europe, growth in its Asia and North America markets and improvements in Australia and New Zealand, while cheaper oil prices have meant lower input costs for the resin maker. It now expects operating earnings before interest, tax, depreciation and amortisation to be between $130 million and $134 million in the year through June, up from its February guidance range of $115 million to $125 million, and ahead of the $125.7 million it reported in 2014.

"It's really showing that some of these companies are benefiting from earlier oil prices," said Grant Williamson, director at Hamilton Hindin Greene. "They're starting to see some good growth. They're in a lot of different parts of the world, and Asia has always been one of their growth engines but certainly Europe is looking good for them now as well, lower oil prices and higher margins and better earnings."

Earlier this week Australian airline Qantas Airways forecast as much as a $A550 million saving on its annual fuel bill as lower global oil prices lower its input costs. Companies that benefit from a cheaper global oil price have been rising as investors expect lower input costs to see a boost to earnings. Freightways, the logistics business, advanced 1.3% to $6.26. Mainfreight increased 0.6% to $15.95. National carrier Air NZ gained 1.4% to $2.94.

Spark NZ, formerly Telecom Corp, rose 0.7% to $2.89. Fletcher Building, the building supplies and construction firm, declined 0.6% to $8.60. Auckland International Airport, the country's busiest gateway, rose 0.7 to $4.58.

Units in Fonterra Shareholders' Fund fell 0.8% to a record low of $4.95. In March Fonterra Cooperative Group, the world's largest dairy exporter, posted a 16% drop in first-half profit to $183 million in the six months to January 31, which it said reflected tough conditions in dairy, while also trimming its guidance for dividends to a range of between 20-30c from a previous range of 25-35c. The fund's units give holders access to the cooperative's dividend stream.

"They've certainly had their issues and the market is not treating them very kindly at the moment," Mr Williamson said.

Trustpower was unchanged at $7.70. The Tauranga-based energy and telecommunications service provider posted a 13% rise in its underlying full-year earnings, excluding revaluation of a major acquisition, to $122.9 million.

Outside the benchmark index, IkeGPS rose 3.8% to 82c after the remote measurement software and hardware developer said it is relocating its chief executive Glenn Milnes and chief technology officer Leon Toorenburg to the US, its major market.

(BusinessDesk)