Market close: shares rise, Ryman, Ebos reach records - Diligent falls

New Zealand shares rose as demand for companies with a solid earnings track and growth prospects helped lift retirement village Operator Ryman Healthcare and medical and pet distributables firm Ebos to record prices.

The NZX 50 Index climbed 18.613 points, or 0.4 percent, to 4599.204. Within the index, 26 stocks rose, 17 fell and seven were unchanged. Turnover was $93 million.

Ebos rose 2.8 percent to a record $10.45, bringing its 12-month gain to 56 percent. The stock is rated a 'buy' based on the consensus of two analysts polled by Reuters.

Ryman, which has more than a decade of earnings growth under its belt, rose 1.4 percent to $7.10. It has a 'hold' rating based on six analysts surveyed by Reuters and has climbed past its median price target of $6.60.

"In the last couple of months the market has had the speed wobbles - a very healthy correction," says Grant Williamson, a director at brokerage Hamilton Hindin Greene. "Now buyers have regained their confidence to get back into the market." They are buying "quality growth stocks".

Summerset Group, a rival to Ryman, rose 0.7 percent to $3.08.

OceanaGold, the operator of the Macraes gold field, continued its recent rally, rising 6 percent to $2.11 as spot gold traded at US$1,340.13 an ounce, near a four-week high.

Michael Hill International, the jewellery chain, led gains among consumer-related stocks, rising 4 percent to $1.29. Outdoor equipment retailer Kathmandu rose 3.4 percent to $2.75 and Trade Me, the auction site, rose 3.2 percent to $4.86.

Children's clothing retailer Pumpkin Patch gained 2.2 percent to 93 cents and Warehouse Group rose 1 percent to $3.95.

Kiwi Income Property Trust rose 0.4 percent to $1.13 after the trust's manager said it had received a proposal from its ultimate owner to internalise the management contract. It has retained First NZ Capital for advice.

Diligent Board Member Services, whose software helps company directors track their work flows, sank 2.9 percent to $6.31 after the Financial Markets Authority announced a lawsuit against founder and former chief executive Brian Henry for alleged manipulation of the shares in early 2010.

"The stock has been sold off even though the FMA action is outside the company itself," Mr Williamson says. "It is negative press for Diligent, which has had quite a bit of it in recent times, particularly given it has been one of the stars on the market in the last few years."

Synlait Milk, which soared on its debut yesterday, extended those gains, rising 2.2 percent to $2.80.

Telecom gained 0.9 percent to $2.355 and Fletcher Building slipped 0.2 percent to $8.51.

(BusinessDesk)