New Zealand shares rose, joining as global rally sparked by Federal Reserve Chairman Ben Bernanke's pledge to keep US monetary policy accommodative. Telecom and Fletcher Building, the biggest companies on the bourse, drove gains.
BUSINESSDESK: New Zealand shares rose, joining as global rally sparked by Federal Reserve Chairman Ben Bernanke's pledge to keep US monetary policy accommodative. Telecom and Fletcher Building, the biggest companies on the bourse, drove gains.
The NZX 50 Index rose 12.04 points, or 0.3 percent, to 3483.96. Within the index, 26 stocks fell, 14 rose and 10 were unchanged. Turnover was $106 million.
Bernanke's comment that interest rates would stay low in the US even as the labour market recovered helped trigger a 1.4 percent gain in the Standard & Poor's 500 Index on Wall Street yesterday. In Asia, gains continued, with Japan's Nikkei 225 Index climbing 1.8 percent in early afternoon trading and Hong Kong's Hang Seng up 1.4 percent.
Telecom climbed 3.1 percent to $2.47 while Fletcher Building gained 1.8 percent to $6.99, the second time this month it has made a run at $7, a level it last breached in October, before issuing a profit warning.
Telecom is rated a 'hold' based on a Reuters poll, having topped its price target of $2.30. Fletcher is rated 'outperform.' Chorus, the network company spun off from Telecom in November, rose 0.9 percent to $3.57.
OceanaGold, extended its gains for a second day, rising 2.6 percent to $3.22 having reported yesterday on progress with its Didipio Project located in northern Luzon, the Philippines.
Ebos Group, the medical and pet supplies company, fell 1.4 percent to $7.25 a day after disclosing a major shareholder had exited its 10.2 percent stake in a private placement at $7.
"A positive is that they didn't have any trouble selling that block of shares," said Mark Lister, head of private wealth research at Craigs Investment Partners. "They had no trouble placing the stock for a reasonable price. People will follow what their next moves are with interest."
Abano Healthcare Group fell 0.7 percent to $4.10. The healthcare clinic investor said today that annual net profit will probably fall, despite strong operating profit and sales growth, reflecting the company's continued transition after selling its New Zealand audiology operations.
Abano said revenue is likely to be between $205 million and $207 million for the year ending May 31, up from $174.8 million the previous year, reflecting growth between 17 percent and 18 percent.
Burger Fuel Worldwide rose 6.3 percent to 85 cents after the fast-food franchisor said it signed an agreement with Sadeen General Trading in Libya, which already operates European coffee brands in the North African nation.
Burger Fuel has been selling licences in the Middle East, which now accounts for about a quarter of its revenue.
PGG Wrightson, the rural services company, fell 5 percent to 37 cents, the biggest percentage decline on the NZX 50 today.
Among retailers, Pumpkin Patch rose 2 percent to $1.02 and Hallenstein Glasson Holdings rose 0.8 percent to $4. Kathmandu dropped 2.5 percent to $1.56.
