MARKET CLOSE: Shares rise, paced by Pacific Edge; Orion up 10% on debut

New Zealand shares rose, paced by Pacific Edge after it announced a European patent for one of its cancer tests. Orion Health Group climbed in its NZX debut, as investors looked for growth stocks.

The NZX 50 Index rose 14.714 points, or 0.3 percent, to 5457.392. Within the index, 22 stocks rose, 23 fell and five were unchanged. Turnover was $96.3 million.

Pacific Edge, the non-invasive bladder cancer test developer, advanced 3.7 percent to 84 cents after saying its colorectal technology had been given regulatory approval after accidently first announcing its Cxbladder had been granted a patent in Europe. The earlier announcement prompted a trading halt in the stock, which had gained 4.9 percent to 85 cents before the halt. The company is due to report earnings on Friday.

"People have gained a little bit of confidence around what might be released," said Paul Harrison, head of equities at Salt Funds Management. "You could describe it as more risk appetite in the market, there is a little bit more positive sentiment in this market."

Orion Health, the health management software developer, climbed 10 percent to $6.27 from its $5.70 offer price and paring an earlier gain of 19 percent to $6.79 on its NZX debut as investors looked to top-up their holdings after scaling in the $125 million initial public offer saw them get less than they wanted. Orion will use the new funds to double the existing 40 research and development teams to accelerate its existing software solutions and to undertake blue sky research on its big data analytics and predictive modelling software.

"Investors have had a successful experience with some of their more speculative growth companies, whether it's Xero or Wynyard, and they're hoping they get something similar out of Orion," Harrison said. "It's part of people's growth portfolios, and there wasn't much issued, we're only talking $120 million in new capital that was raised, so there was not much stock to go around."

Xero, the cloud-based accounting software company, gained 0.6 percent to $17.10. Wynyard Group, the security software firm, climbed 1 percent to $2.12.

Genesis Energy fell 1.9 percent to $2.06. New Zealand's largest electricity retailer has raised US$150 million in its first issue of notes in the US private placement market and will use the funds to repay bank debt.

MightyRiverPower was unchanged at $2.97. The partially privatised energy company has claimed in the High Court it shouldn't have to pay for carbon units issued for years prior to the start of its contract with New Zealand Carbon Farming in 2013, which it entered as part of its effort to offset emissions from electricity generation.

Infratil was the worst performer on the day, falling 8.5 percent, or 27 cents, to $2.91, as the infrastructure investor shed rights to its 4.5 cents interim dividend and its 15 cents special dividend. Warehouse Group slipped 1.3 percent, or 4 cents, to $3.15 after New Zealand's largest listed retailer shed rights to its 6 cents final dividend. Trustpower declined 3.2 percent, or 25 cents, to $7.55 after shedding rights to 20 cent interim dividend.

DNZ Property Fund fell 1.6 percent, or 3 cents, to $1.82, shedding rights to its 2.375 cents interim dividend.

Outside the benchmark, Pumpkin Patch extended decline, dropping 15 percent to a record low of 25 cents on concern the unprofitable children's clothing chain may seek new capital to bolster its balance sheet after saying it may breach bank covenants if Christmas sales disappoint.

"It's on the back of the chairman's comments at the AGM yesterday around a potential for them to need extra capital," Harrison said. "It's not ideal to do that at AGMs, if you're going to raise capital you probably should have organised it before you start talking about it."

Dorchester Pacific, the finance and insurance firm buying Turners Group, rose 1.8 percent to 29 cents after it more than doubled first-half earnings to $5.1 million with the contribution from recent acquisitions and lifted full-year guidance. It expects pretax profit of about $14 million in the year ending March 31, 2015, compared to a previous forecast of $11.5 million, which was an upgrade from earlier guidance.

Tourism Holdings, the biggest campervan rental company in Australia and New Zealand, gained 4.8 percent to a six-year high of $1.75 after it said annual profit may rise as much as 44 percent to $16 million on increased sales and lower costs.

Smartpay, the listed payments terminal supplier, declined 9.1 percent to 20 cents after it posted a 70 percent gain in first-half profit to $1.5 million as it benefited from currency movements and revenue from its partnership with Euronet Worldwide's epay unit.

Energy Mad, the energy efficient lightbulb marketer, tumbled 20 percent to 16 cents after it secured $284,000 in funding from shareholder Superlife to help support its local and overseas growth plans via a convertible note, with a maximum conversion price of 13 cents.

(BusinessDesk)