MARKET CLOSE: Buoyed by cheap oil, NZX50 rises to record high

The NZX 50 Index rose to a record high, led by Freightways and paced by Mainfreight, as falling oil prices look set to cut costs for the courier and logistics companies. Metlifecare and Summerset Group Holdings advanced.

The benchmark index rose 26.804 points, or 0.5 percent, to a fresh record of 5636.606. Within the index, 28 stocks rose, 12 fell and 10 were unchanged. Turnover was $70 million.

Oil prices fell to a five-and-a-half year low, stoking demand for companies likely to benefit from the cheaper input costs. Freightways climbed 3.9 percent to a record close of $6.08. Global logistics firm Mainfreight gained 0.9 percent to $15.79.

"Investors are buying on the back of the lower oil prices, which will certainly suit the logistics sector," said Grant Williamson, director at Hamilton Hindin Greene. "Investors do realise the New Zealand economy is quite well positioned compared to a lot" of other nations.

Air New Zealand, the national carrier, rose 0.8 percent to $2.62. The airline last year told the market said it was saving on falling jet fuel costs. Z Energy, the service station chain, advanced 1.5 percent to $4.69, as it maintains wide margins on falling oil costs. Auckland International Airport, New Zealand's busiest gateway, advanced 2.1 percent to $4.34.

Metlifecare rose 0.9 percent to a seven-year high $4.76. The retirement village operator has entered into a conditional agreement to buy 5 hectares of land in Auckland as part of a $150 million project. Summerset Group Holdings gained 2.7 percent to $3.10 extending yesterday's gains after it said it lifted annual sales 12 percent. Ryman Healthcare rose 0.1 percent to $8.49.

Trade Me Group was the worst performer on the benchmark today, falling 2.2 percent to $3.54. The online auction site spent $7.7 million buying a 15 percent stake in HarMoney, the peer-to-peer lender, valuing the company at about $55 million.

Spark New Zealand, formerly Telecom Corp, rose 0.5 percent to $3.175. Fletcher Building, the construction and building supplies business, slipped 0.4 percent to $8.36.

Kathmandu Holdings, the outdoor goods retailer, advanced 2 percent to $2.01. Nuplex Industries, the specialty chemical manufacturer, rose 3.5 percent to $2.98.

On the New Zealand Alternative Index, Pushpay Holdings was unchanged at $2.50. The mobile payment app developer has appointed Graham Shaw as an independent director, to fulfil listing rules ahead of its proposed shift to the main board.

(BusinessDesk)