MARKET CLOSE: NZ shares rise to record, led by Spark, Skellerup, Steel & Tube

New Zealand shares edged up to a fresh record, led by Spark New Zealand, Skellerup Holdings and Steel & Tube Holdings.

The S&P/NZX 50 Index gained 20.93 points, or 0.3 percent, to 6,844.74. Within the index, 26 stocks rose, 13 fell and 10 were unchanged. Turnover was $132.4 million.

"We're in a little bit of a lull with a lack of corporate news - we're just in a bit of a calm patch ahead of the US reporting season ramping up next week, the inflation report and other major events," said Mark Lister, head of private wealth research at Craigs Investment Partners. "We've had some positive drivers from overseas, markets have generally been pretty upbeat. Today's gain puts us at about another 8 percent return level for the year, which is an outstanding return."

Spark led the index, advancing 2.9 percent to $3.715. The company yesterday welcomed a government review into the Telecommunications Act, which will introduce certainty into how much fibre and copper lines network owners can charge it for broadband provision.

"It's probably nothing more than the low interest rate environment. It's just a good solid dividend-paying company," Lister said. "At the margin, the review will give a bit of certainty to investors as to how things are looking on the regulatory front. Spark's been a good performer, they pay a highly attractive yield and they fit the economic and investment landscape we're facing at the moment. That's just another positive to add to the upbeat sentiment the company's been enjoying."

Skellerup Holdings was up 2.9 percent to $1.44.

Steel & Tube Holdings rose 2.7 percent to $2.28. On April 6, the Commerce Commission said Steel & Tube's seismic steel mesh didn't meet standards and it understands the mesh will not be sold until compliance can be demonstrated and Lister said there was some bargain-hunting from the stock's resulting weakness.

"It's been under a bit of pressure of late with the issues they've been facing, but they're getting a bit of support today," Lister said. "There's still a bit of uncertainty for them ahead."

SkyCity Entertainment Group advanced 2.4 percent to $5.13. Last week it shed 7 percent over Thursday and Friday's trading sessions after the resignation of its chief executive Nigel Morrison. The company has gained this week after it ran a conference call with investors and analysts, which media were barred from, amid reports its Darwin casino is being touted to international investors.

"They had a particularly rough week last week but they've pretty much erased all of those losses this week," Lister said. "The CEO resigning was a bit out of the blue, and did smell a bit fishy, so it's not surprising there was a negative market reaction. They obviously looked to talk to some of the important investors and analysts earlier in the week to allay some of those concerns. Some people will probably take the cynical view, but for the time being confidence seems to have recovered somewhat."

NZX gained 2 percent to $1.03 and Heartland Bank rose 1.7 percent to $1.19.

Ebos Group was the worst performer, down 2.8 percent to $16.05, a six-week low. The animal and healthcare company has gained 21 percent this year, one of several health stocks which investors have found attractive.

Z Energy fell 2.7 percent to $6.75 while Meridian Energy dropped 1.7 percent to $2.65, and Infratil shed 1.2 percent to $3.30. 

Meridian Energy dropped 1.7 percent to $2.65, and Infratil shed 1.2 percent to $3.30.

Chorus declined 0.4 percent to $3.975. The telecommunications network operator increased broadband connections 0.4 percent in the March quarter as customers continued to move away from fixed-line services on the copper network to fibre.

NZAX-listed GeoOp was unchanged at 30 cents. Auckland-based GeoOp, which develops a workforce management app, is asking shareholders to approve a deal where it will buy InterfaceIT for $9 million in shares and convertible notes. The deal would see the Australian company's owners hold about 32 percent of the merged entity, rising to as much as 64 percent if certain conditions are met in what Simmons Corporate Finance called a worst-case scenario for the GeoOp shareholders in its report on the deal.

(BusinessDesk)