NZ shares gain led by tech stocks
Tue, 17 Jul 2012 9:25p.m.
New Zealand shares rose paced by tech stocks, Xero and Diligent Board Member Services as the new entrants to the benchmark index confirmed their global expansion continues.
The NZX 50 Index rose 1.52 points, or 0.04 percent, to 3468.86.
Within the index, 23 stocks rose, 17 fell and 10 were unchanged. Turnover was about $104 million.
Xero, the cloud-based accounting platform provider, lead the gains up 8.6 percent to $5.70, while Diligent rose 2 percent to $4.
The tech companies joined the NZX in June replacing struggling GPS-components maker Rakon and building supplies manufacturer Steel & Tube.
Xero announced on Tuesday it will integrate with US-based payroll provider ADP to allow businesses and accountants to securely transfer payroll data to its cloud.
The stock has gained 90 percent so far this year.
"It's just a good news story that New Zealand is catching up on slowly," said Greg Easton, investment adviser at Craigs Investment Partners.
"They haven't made a profit yet though so people need to keep their feet on the ground."
Diligent's momentum continued, nearly tripling its sales in the June quarter, while adding 216 new clients, up from 133 in the same three months last year. The stock has gained 103 per cent so far this year.
Mr Easton said unlike Xero, Diligent is "cash-flow positive and profitable" - even though they "don't have as broad horizons as Xero they have a niche product and a mover advantage".
OceanaGold rose 4.17 percent to $5.70 even after the Macraes goldfield operator announced it will be investigating the death of a contract worker after a severe storm at its Didipio mine project in the Philippines.
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