Nov. 26 (BusinessDesk) - New Zealand’s benchmark NZX 50 Index to its highest close in almost five years, joining a global rally amid demand for higher yields an optimism Europe will grant Greece its next tranche of financial aid. PGG Wrightson, Vector and Contac t Energy gained.
The NZX 50 gained 3.69 points, or 0.1 percent, to 4012.02, the highest since early January 2008. Within the index, 19 stocks rose, 17 fell and 14 were unchanged. Turnover was about $87 million
The Dow Jones Industrial Average rose 1.4 percent on Friday, rounding out a 3.3 percent weekly gain. In Asia today, Japan’s Nikkei 225 Index was 0.7 percent higher in early afternoon trading.
“It was a big week last week with offshore markets playing risk on,” said David Price, a broker at Forsyth Barr. “It is a global phenomenon where it doesn’t pay to be a saver” and that’s prompting investors to take on more risk and buy shares.
Wrightson, the nation’s biggest rural services company, gained 6.1 percent to 35 cents, a three-week high. The stock is rated ‘outperform’ based on the consensus of five analysts polled by Reuters, with a price target of 49 cents.
Vector, the Auckland-based lines company, rose 1.9 percent to $2.66, recovering from the five-month low reached on Friday. The stock has tumbled in the past two weeks after the company lost its final appeal against the way the Commerce Commission set starting prices for the new regime regulating prices for its monopoly services.
Contact, the biggest utility on the exchange, rose 1.4 percent to $5.15.
Heartland New Zealand rose 1.5 percent to 70 cents. The building society said after the market closed that it expects to find out the success of its application for a banking licence before Christmas, having previously anticipated a decision in November.
Fisher & Paykel Healthcare rose 1.6 percent to $2.50, the highest close in 11 months. Last week the maker of breathing masks and respirators beat its guidance with an 18 percent gain in first-half profit, making record sales while keeping a rein on costs and widening its margins. It said profit in the full-year would also beat its estimate.
Fletcher Building, the biggest company on the exchange, fell 0.3 percent to $7.97, having closed above $8 on Friday when brokerage Forsyth Barr upgraded the stock to a 'buy.'
Among smaller companies, NZ Experience, the operates the Rainbow’s End fun park, jumped 9.8 percent to 45 cents after Wellington-based Rangatira indicated it would acquire the 74.86 percent stake owned by the Trustees of the Estate of George Ryerson Gardiner as part of a full takeover at 36 cents a share.