NZ stocks rise, Telecom paces gainers

New Zealand stocks rose, with Telecom pacing gainers on the exchange after the Commerce Commission dropped its probe into national mobile roaming services, while New Zealand Oil & Gas fell to a 5-year low.
The NZX 50 Index rose 8.96 points, or 0.27%, to 3,297.92. Within the index, 24 stocks rose, 12 fell and 14 were unchanged. Turnover was $77.6.4 million.
Telecom rose 1.9% to $2.16 after antitrust authorities said they would no longer be investigating how New Zealand’s biggest telephone company and Vodafone charge competitors to use their networks, after Two Degrees reached a commercial agreement with Vodafone.
The announcement comes just days after the company was listed as one of three prioritised bidder to rollout government’s ultrafast broadband network.
Shane Solly, portfolio manager for Mint Asset Management said the stock’s recent gains were a sign that people were becoming more comfortable with the idea that Telecom would come out as the eventual winner in the process.
New Zealand Refining, the Northland based oil refinery, rose 2.6% to $4.01, its highest level in more than five months, leading gainers on the exchange. The shares are rated ‘outperform’ based on the consensus of three recommendations compiled by Reuters.
Goodman Property Trust, the commercial and industrial properties owner, rose 2.2% to 95 cents, Ryman Healthcare, the retirement village operator, rose 1.8% to $2.29, and Fisher & Paykel Appliances Holdings, the whiteware maker, rose 1.8% to 58 cents.
Skellerup Holdings rose 3.9% to $1.07, their highest level since June 2007, after the rubber goods and milking equipment manufacturer revised its earnings forecast upwards, with 2011 profit expected to be $2.5 million more than previous expectations.
The company, which will join the NZX 50 index next week, lifted forecast net profit to a range of between $18.5 million and $19.5 million for the year ended June 30, up from a previous expectation of between $16 million and $17 million.
“They’ve continued to just tidy up the business, and at this early point they are showing some good signs going forward,” Solly said.
NZX, the securities market operator was unchanged at $1.45 after antitrust authorities across the Tasman cleared the way for the A$8.4 billion merger between the Australian Stock Exchange and Singapore Stock Exchange. If the deal goes through NZX faces the risk of being marginalised by the scope of the ASX-SGX capital market.
NZ Oil & Gas, the energy exploration and production company, fell 4.7% to 81 cents, pacing decliner on the day as the receivership of Pike River Coal, in which it owns a 29% stake, continued to weigh on the stock.
Fletcher Building Ltd., New Zealand’s biggest construction company, fell 1.3% to $7.75 after it agreed to acquire Australia’s Crane Group for A$870 million in stock and cash, gaining a network of plumbing supply outlets and the Iplex plastic pipeline systems business.
“This is the transaction we’ll want to see more detail on,” Solly said. “As a first response people have been uncertain of it.”
Warehouse Group, the country’s biggest listed retailer, fell 3% to $3.61, Sanford, the fisheries group, fell 2.2% to $4.50, and Guinness Peat Group, the investment holding company, fell 1.4% to 71 cents.
Articles via   TVNZ