Market close: Shares up after rise in Australian optimism

BUSINESSDESK: New Zealand shares rose after a report showed a jump in Australian consumer confidence, lifting stocks including Westpac Banking Corp. Fast-food restaurant operator Restaurant Brands led gainers.

The NZX 50 Index rose 14.11 points, or 0.4%, to 3478.84. Within the index, 22 stocks rose, 17 fell and 11 were unchanged. Turnover was $120 million.

Westpac gained 1.64% to $27.45 after Australia's consumer confidence rose 3.7% to 99.1 in July, a five-month high, a Westpac-Melbourne Institute survey showed.

"There has been a question over the banking sector in general, especially with what is happening in Europe," Michael Milne, investment adviser at Craigs Investment Partners.

"People are starting to realise that Australian banks don't have a lot of exposure” to Europe’s debt crisis.

Australia & New Zealand Banking Group climbed 0.4% to $28.70.

Restaurant Brands, which operates the local Pizza Hut, KFC and Starbucks outlets, rose 1.9% to $2.11.

Shares in Oceanagold, the operator of the Macraes gold field, gained 1.7% to $2.13. The stock often seesaws alongside the price of gold, which closed the day at $US157.84 an ounce, up from $US1.568 at 8am.

Auckland Airport, which is targeting Asian arrivals to stoke growth over the next decade, rose 1.6% to $2.43. The stock has a dividend yield of 4.8%.

"It's always been a popular stock and it has held up well in recent times," Mr Milne said. "It has been seen as less volatile stock and it pays a good dividend and is a good asset."

The decline was led by Heartland New Zealand, down 3.7% to 51 cents.

Last week, Pyne Gould Corp sold-down its stake in the would-be lender, coinciding with South Island businessman Craig Tomlinson increasing his holding. Mr Tomlinson is now Heartland's biggest shareholder with 8.8%.

Tower, the insurance and wealth management firm, declined 1.2% to $1.59 after Guinness Peat Group yesterday disclosed its holding had slipped to 33.6% from 34.99% because Tower’s dividend reinvestment plan had lifted overall shares on issue.

Shares in the Warehouse Group, the biggest retailer on the NZX 50 Index, fell 1.6% to $2.55.

Mainfreight, New Zealand's biggest road transport company fell 1.5% to $9.69 after it shed its dividend today.