MARKET CLOSE: NZ stocks rise; NZ Refining leads gainers

Article – BusinessDesk

June 30 (BusinessDesk) – New Zealand stocks rose, with the upbeat sentiment after the Greek austerity vote flowing through to regional markets. New Zealand Refining Co. led gainers, while Tower Ltd. fell.

MARKET CLOSE: NZ stocks rise; NZ Refining leads gainers, Tower falls

By Jason Krupp

June 30 (BusinessDesk) – New Zealand stocks rose, with the upbeat sentiment after the Greek austerity vote flowing through to regional markets. New Zealand Refining Co. led gainers, while Tower Ltd. fell.

The NZX 50 Index rose 33.42 points, or 1%, to 3,448.35. Within the index, 30 stocks rose, 7 fell, and 13 were unchanged. Turnover was $112.9, amid end of the quarter flows. In the quarter, the index rose 0.2%, after receding from its highs in May.

Stock markets across the Asia Pacific region rose as concerns of a possible Greek sovereign debt default eased. In afternoon trade, Japan’s Topix Index rose 0.3% to 849.94, Hong Kong’s Hang Seng Index gained 1.7% to 22,436.78, and Australia’s S&P/ASX 200 climbed 1.6% to 4,599.6.

“The easing of the Greek debt situation has had the function of helping global equities, and we’re just seeing a reasonably positive tone on the back of that,” said Craig Brown, senior investment analyst at OnePath New Zealand, who helps manage $1.1 billion in local equities. “It’s not so much that we’ve seen people coming back into the market, rather it’s just less people selling out.”

The mood on the local market was also bolstered by the latest business confidence numbers, which rose for a third month, according to the National Bank survey.

NZ Refining, which operates the country’s only oil refinery, rose 5.3%. The stock is rated as “hold” according to a consensus poll of four analysts compiled by Reuters.

AMP Ltd., the Australian wealth manager, rose 3.9% to $6.32. Methven Ltd., the tapware manufacturer, rose 2.7% to $1.54.

Construction stocks were in the spotlight today, with Fletcher Building Ltd., the country’s biggest building firm, gaining 2.4% to 8.62. Steel & Tube Holdings, the building material supplier, rose 1.9% to $2.67.

AMI, the Christchurch-based insurer that sought government support today said it had secured reinsurance, allowing it to offer cover.

Warehouse Group, New Zealand’s biggest listed retailer, rose 1.8% to $3.47.

Lyttelton Port Co. was unchanged at $2.33. The South Island’s busiest port said it’s struggling to secure natural disaster insurance coverage ahead of the expiry on its existing policy tomorrow.

PGG Wrightson Ltd., the rural services firm, was unchanged at 48 cents. The company announced it will retake control of Wool Partners International after the company failed to raise some $120 million needed to buy PGW out and transform itself into a Fonterra-style cooperative.

Tower Ltd., the general insurer, fell 1.3% to $1.54, leading decliners on the exchange.

Guinness Peat Group, the company’s biggest shareholder with a 35% stake in the company, has appointed Mike Allen to its board.

His appointment comes as GPG looks to exit its controlling stake in the insurer. Shares in GPG, the investment holding company, were unchanged at 80 cents.

Goodman Fielder Ltd., the Australian food ingredient manufacturer, fell 1.5% to $1.35.

New Zealand Oil & Gas Ltd., the energy exploration and production company, fell 1.2% to 83 cents after chief executive David Salisbury announced he would be stepping down.

His resignations comes just days before the start of hearings of the Pike River coal mine commission of inquiry, although the company has denied any connection. NZOG holds a 29% shareholding in Pike River Coal Ltd., which has been in receivership since late last year, following explosions at the mine that killed 29 workers in November.

Goodman Property Trust, the listed property investment vehicle, fell 1% to 95 cents.

(BusinessDesk)

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