Article – BusinessDesk
June 28 (BusinessDesk) New Zealand shares rose on the last trading day of the second quarter, joining an Asia-wide rally after better economic data out of the US and Japan. NZ Oil & Gas, Chorus, Restaurant Brands and OceanaGold led the …
MARKET CLOSE: NZ shares rise as equity markets rebound; NZOG, Chorus, OGC gain
June 28 (BusinessDesk) – New Zealand shares rose on the last trading day of the second quarter, joining an Asia-wide rally after better economic data out of the US and Japan. NZ Oil & Gas, Chorus, Restaurant Brands and OceanaGold led the advance.
The NZX 50 Index fell 23.212 points, or 0.5 percent, to 4440.173. Within the index, 36 stocks rose, nine fell and five were unchanged. Turnover was $100 million.
OceanaGold, the gold miner, rose 2.9 percent to $1.44 after saying it will put off production at its Reefton mine, putting it into care and maintenance in mid-2015 until the price of gold improves. The plan will strip out between $40 million and $45 million of capital spending over the next two years.
“Where other gold miners have made similar strategic decisions it has generally been treated positively by the market,” said Shane Solly, portfolio manager at Mint Asset Management. “A number of Australian gold stocks had a bounce off their bottom.”
Equity markets have benefited from what has been “a little more positive global statistics” while the end of the quarter is seeing some of the usual end-of-period positioning, he said.
NZ Oil & Gas rose 5.7 percent to 84 cents. The shares are rated a ‘buy’ based on a Reuters poll of six analysts with a median price target of $1.
Chorus rose 4.8 percent $2.39, trimming an 11 percent slide in the quarter after investors soured on the network operator’s future as a monopoly supplier of wholesale telecommunications services.
Fletcher Building fell 0.2 percent to $8.43 after the Commerce Commission said it is investigating allegations of anti-competitive behaviour in the Auckland commercial timber market. Fletcher Building says it doesn’t expect to face enforcement action. The regulator’s announcement offset the positive news today of rising building permits in May and plans to ramp up infrastructural projects in Auckland.
Restaurant Brands rose 2.9 percent to $2.84 after the country’s biggest fast food chain operator said annual profits will be slightly ahead of last year’s, and that it sees future growth in the hands of its new Carl’s Jr burger brand, and potentially Mexican food joint Taco Bell.
Pumpkin Patch plunged 9.3 percent to 78 cents, a 16-month low, after the retailer said annual earnings will fall by as much as 35 percent as heightened Australian competition eats into profit margins. The retailer expects profit after tax, excluding reorganisation costs, of between $7.5 million to $9 million in the 12 month as ending July 31, down from $10.1 million a year earlier.
Restaurant Brands “is working pretty hard to maintain their revenue numbers but they’re continuing to reap bigger profits,” Solly said. Pumpkin Patch “is in a tough industry at the best of times. Now we’re seeing weaker conditions in Australia and it will probably stay that way until the elections.”
Fisher & Paykel Healthcare rose 2.7 percent to $3.45 at the end of a quarter where the currency is heading for a 6.7 percent slide against the greenback. The breathing masks and respirators maker derives half its revenue in US dollars.
Ailing retailer Postie Plus rose 3.1 percent to 16.5 cents after the clothing chain said it plans to lay off staff in a bid to clamp down on costs.
Xero gained 0.3 percent to $16, for a 42 percent quarterly surge and valuing the company at $1.88 billion. The company is the highest priced local stock on the bourse. Diligent Board Member Services, which has plunged 12 percent this week, pared its decline, rising 2.3 percent to $6.80.
Telecom fell 3 percent to $2.25 after rival mobile operator Two Degrees Mobile said it had become operationally profitable after entering the market just three years ago.