MARKET CLOSE: NZ shares follow global markets higher; Air NZ gains

 New Zealand share rose, led by Argosy Property, as global stocks rallied on upbeat US employment data and the prospect Europe's central bank will have to print money to revive its flagging economy. Air New Zealand gained as falling oil prices translated into cheaper jet fuel.

The NZX 50 Index advanced 15.995 points, or 0.3 percent, to 5574.052. Within the index, 28 stocks rose, 14 fell and eight were unchanged. Turnover was $89 million.

Stock markets across Asia followed Wall Street higher, with Japan's Nikkei 225 Index up 2 percent in afternoon trading, Hong Kong's Hang Seng up 0.5 percent, and Australia's S&P/ASX 200 index up 0.4 percent.

Equity markets got a boost from better than expected US job figures, while deflation across the Eurozone stoked expectations the European Central Bank will embark on a quantitative easing programme, which would flow through to stock markets.

"We're following the overnight lead, that's the key thing - it's a bit of a relief rally," Andrew Bascand, managing director Harbour Asset Management said. "There was some better German employment data, there were some more market-friendly comments out of Europe, in terms of policy and there was some good US data as well."

Falling oil prices is expected to remove inflationary pressures that may have prompted central banks to raise interest rates more aggressively, and encouraged investors to seek dividend-paying stocks.

Property trusts, held for their reliable income, rose. Argosy Property climbed 2.3 percent to $1.135. DNZ Property Fund gained 1 percent to $1.95. Property For Industry rose 1 percent to $1.555. Kiwi Property Group advanced 0.8 percent to $1.28. Vital Healthcare Property Trust climbed 1.9 percent to $1.63.

Air NZ climbed 2.2 percent to $2.605. The national carrier flagged last year falling oil prices was translating to cheaper jet fuel, a significant input cost for the airline.

Kathmandu Holdings was the worst performer in the day, dropping 3.5 percent to $1.95. The outdoor goods retailer flagged weak sales in the lead up to Christmas.

"Kathmandu gave us a pre-Christmas warning," Bascand said. "Now we're waiting for Kathmandu to tell us how they went over the Christmas break."

Warehouse Group, New Zealand's largest listed retailer, slipped 0.7 percent to $2.89, continuing yesterday's decline after it slashed first-half earnings guidance, blaming a cold, wet spring and summer for poor seasonal sales.

Across the Tasman, building consents rose to a record high for any month, which boosted construction companies on the local bourse, Bascand said. Fletcher Building, the construction and building supplies company, gained 0.4 percent to $8.12. Steel & Tube Holdings, the steel products manufacturer, rose 1.1 percent to $2.86.

Diligent Board Member Services rose 2.1 percent to $5.36. Trade Me Group gained 2 percent to $3.62.

NZX was unchanged at $1.16 after the stock market operator's monthly shareholder metrics showed December trading volumes and values fell from a year earlier.

(BusinessDesk)