New Zealand shares rose, nudging the NZX 50 Index back toward
the five-year high charted last month, as Australian interest
drove Xero to a record and Fletcher Building gained after
agreeing to buy a laminated panels business in India.
The NZX 50 rose 26.07 points, or 0.7 per cent, to 3983.99.
Within the index, 24 stocks rose, 13 fell and 13 were
Turnover was $78.7 million.
Xero, the cloud-based accounting services company that dual
listed on the ASX last week, rose 8.6 per cent to $6.30,
giving it a market value of $622.
That's even before the fast-growth company, which listed on
the NZX in June 2007, has turned a profit. It has gained 110
per cent this year.
Listing on the ASX "opens up more buying in the stock -
that's what we've seen", said Grant Williamson, a director at
Hamilton Hindin Greene.
Fletcher Building rose 3.3 per cent to $7.48 after its local
affiliate, Formica Laminates (India) Private, agreed to buy
the laminates manufacturing business of listed Indian
manufacturer Well Pack Papers & Containers in the Indian
state of Gujurat for 365 million rupees ($8.2 million).
Contact Energy fell 2.6 per cent to $5.21 after its
controlling shareholder, Australia's Origin Energy, warned
last week that regulatory and pricing decisions would cut
underlying profit as much as 10 per cent this year.
Among smaller stocks, Genesis Research and Development was
halted from trading at 1.8 cents and told the ASX it may not
have enough funds to keep operating without a loan or more
support from shareholders.
Telecom, the biggest phone company on the NZX 50, rose 1 per
cent to $2.435, and Chorus, the networks company spun off
from Telecom last year, rose 0.9 per cent to $3.27. Chorus
has gained 3.9 per cent this year.
Retailer Warehouse Group rose 0.3 per cent to $3.19 and
Fisher & Paykel Healthcare climbed 1.2 per cent to $2.46.