Market closes on five-year high

05:21, Feb 27 2013

The New Zealand sharemarket finished on a five-year high this afternoon, rising 37 points to 4276.1, following a bounce in United States and Australian markets.

The NZX50 was up 0.87 per cent today while the US S&P 500 closed up 6 per cent and the Australian ASX was also recently up 6 per cent.

The New Zealand dollar fell sharply overnight against the United States dollar but had only lost another 0.02 cents on the day to recently sit at US82.50c.

On the NZX50, 29 stocks gained and 7 declined with 14 unchanged over the day. NZX Limited led the gainers while Heartland Bank led the decliners.

Goldman Sachs and Partners institutional broker Peter Sigley said the Fonterra Shareholders Fund's announcement that it would issue bonus shares and invest in UHT milk production at its Waitoa plant near Hamilton was positive for the market even though its share price dipped.

Fonterra fell 0.8 per cent to $7.18.

Sigley said Guinness Peat Group's reported $6 million loss was in line with expectations, as was PGG Wrightson's first half net profit of $4.8 million.

"A highlight is the PGW result which the market has taken quite well - there were some difficulties around climactic conditions but much more importantly the company has resumed paying a dividend," Sigley said.

Of the gainers on the index NZX Ltd was up 4.8 per cent to $1.31, Metlifecare gained 2.5 per cent to $3.24, and Ryman Healthcare rose 2 per cent to $4.62.

Telecom was up 1.9 per cent to $2.37, Trade Me gained 1.9 per cent to $4.79, OceanaGold Corp rose 1.6 per cent to $3.05.

On the downside, Heartland Bank dropped 2.7 per cent to 71 cents, Kathmandu fell 1.2 per cent to $2.36, and Diligent Board Member Services was down 0.9 per cent to $5.20.

Guiness Peat Group dropped 0.8 per cent to 59 cents, Sky fell 0.7 per cent to $5.28 and DNZ Property Fund was down 0.3 per cent to $1.67.

On the currency crosses the New Zealand dollar was recently trading at US82.50 cents, down from US82.52c this morning, and at 80.63 Australian cents, down from 80.65 this morning.

The kiwi was trading at 63.12 Euro cents, down from 63.25c this morning, and at 75.81 Japanese yen, up from 75.80 yen earlier, and at 54.57 British punds, up from 54.50 pence.

The Trade Weighted Index of major trading partners' currencies was down to 75.60 from 76.30 this morning.

The 90 Day bank bill rate was at 2.67 per cent.


Fairfax Media