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NZ shares follow global rally

Reported by AAP
Thursday, April 12, 2012
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Super-rich getting richerThe world's super-rich could actually be wealthier than anyone first thought.

New Zealand shares followed the global rally in stock markets after a surprise first-quarter profit for aluminium producer Alcoa.

An upbeat view from the Federal Reserve's regional breakdown of the US economy stoked investors' appetite for riskier assets.

Heartland New Zealand led gains on the local market.

The NZX 50 Index rose 21.7 points, or 0.6 per cent, to 3,487.09.

Within the index 29 stocks gained, 11 fell and 10 were unchanged.

Turnover was $84 million, of which $34.5 million was trading in Fletcher Building.

Share markets across the Asia Pacific region joined in the global rally, with Australia's S&P/ASX 200 index gaining 0.6 per cent to 4,272.7, Hong Kong's Hang Seng up 0.4 per cent to 20,229.28 and Japan's Nikkei 200 index rising 0.6 per cent to 9,508.27 in afternoon trading.

"It looks like we continued on from reasonably positive sentiment from offshore markets," said Craig Brown, senior investment analyst at OnePath New Zealand.

"There was a little of a rebound and bounce-back in a couple of stocks that have been sold off - Fletcher Building springs to mind."

Fletcher gained 2.2 per cent to $6.15, snapping six straight days of declines as investors become wary of a weak Australian housing market, delays to Christchurch's rebuild, and a strong currency that cuts the price of foreign building product competitors.

Heavyweight stocks underpinned the NZX50's gain, with Auckland International Airport climbing 0.6 per cent to $2.47, Telecom gaining 0.6 per cent to $2.51 and Contact Energy up 1.1 per cent to $4.83.

Heartland was the biggest gainer on the benchmark index, up 8.2 per cent to 53 cents, followed by Vector, which gained 3 per cent to $2.74.

Michael Hill International rose 2.9 per cent to $1.05 after the jewellery chain reported shrinking Australian sales in its third-quarter update.

Total sales rose 5.1 per cent to $391 million in the nine months ended March 31, though same-store sales in Australia fell 2.7 per cent to $239 million.

01/09/2014 23:42Sydney, Australia. 1 September,2014
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