The New Zealand sharemarket closed higher today, reflecting buoyant global equity markets, but Nuplex Industries shares closed down after further coverage of a court action against it alleging a breach of continuous disclosure.The benchmark NZX-50 index c
The New Zealand sharemarket closed higher today, reflecting buoyant global equity markets, but Nuplex Industries shares closed down after further coverage of a court action against it alleging a breach of continuous disclosure.
The benchmark NZX-50 index closed up 25.479 points, or 0.8%, at 3335.513, which is a new 18-month high.
Turnover was worth $63.8 million. There were 46 rises and 29 falls among the 115 stocks traded.
Shares in the industrial resins and specialties group Nuplex closed 7c lower at $3.40, and traded as low as $3.35, after the Securities Commission yesterday filed civil proceedings against the company and six current and former directors.
The commission alleges Nuplex breached its obligations under NZX Listing Rules and the Securities Markets Act by failing to disclose to the market a breach of a banking covenant.
Nuplex denies the allegations. Nuplex's non-executive director David Jackson resigned from the Securities Commission today.
The company has become a market darling since carrying out a deeply discounted capital raising to restore its balance sheet. Its share price has more than tripled from a year ago.
"It is probably, as we term it in this industry, a bit of an excuse to take profits," said Adrian Vance, director at Hamilton, Hindin, Greene. "The stock has had an unbelievable run up since the days that are in question."
Among the leaders Telecom rose 4c to $2.24, Fletcher Building rose 17c to $8.45 and Contact Energy rose 4c to $6.48.
Also gaining were Hallenstein Glassons up 5c to $3.50, Mainfreight 5c to $6.50, Sanford 11c to $4.56, Skellerup 2c to 61c and Sky City 2c to $3.30.
Air NZ eased a cent to $1.40. Hellaby eased 3c to $1.59 and NZ Refining eased 5c to $3.90.
In the mining and resources sector, Heritage Gold rose 0.3c to 2.9c, Cue Energy rose 3c to 33c and OceanaGold rose 4c to $3.53, but Pike River Coal eased a cent to $1.11.
Overseas markets
Asian equity markets were strong after Intel posted a stronger-than-expected first quarter profit after the US market closed.
Stocks on Wall Street eked out a gain as investors looked ahead to earnings from big banks and tech bellwethers, even as disappointing revenue from Alcoa acted as a headwind.
The Dow Jones Industrial Average finished up 0.1% at 11,019.42, the S&P 500 Index ended up 0.1% at 1197.29 and the Nasdaq Composite Index was up 0.3% at 2465.99.
