NZ shares gain, pushing NZX up 1 percent
Thu, 14 Jun 2012 10:03p.m.
New Zealand shares rose, pushing the NZX 50 Index up 1 percent, led by gains in network company Chorus and Telecom and as some investors bet Sky City Entertainment Group will eventually get its convention hall-for-slots deal.
The NZX 50 rose 34.35 points, or 1 percent, to 3416.08. Within the index, 23 stocks gained, 15 fell and 12 were unchanged. Turnover was $113 million.
Shares rose after the Reserve Bank kept the official cash rate at a record low 2.5 percent and hinted that economic headwinds are sufficiently strong to keep interest rates lower for longer.
The MPS "was largely expected so I don't think it's had much effect on our market", said Craig Brown, senior investment analyst at One Path New Zealand.
Shares in Sky City, the Auckland-based casino and hotel company, rose 1.8 percent to $3.41.
The deputy auditor-general Phillippa Smith has announced an investigation into a proposal to build a convention centre in Auckland in exchange for more pokie machines.
The deal has been met with criticism from opposition parties.
"Sky City has indicated they have got the preferred status for the convention centre," Mr Brown said.
"They will just be going through the process so they can ensure they get what they need for shareholders."
OceanaGold rose 2.3 percent to $2.73.
The stock has seesawed along with the price of gold and the historically high New Zealand dollar.
"It's not a deep market for the stock so it can bounce around - it doesn't reflect anything coming out of the company," Mr Brown said.
Chorus, New Zealand's largest fixed line telecommunications network operator was the biggest gainer on the NZX 50, rose 4 percent to $3.15.
That was followed by a 3 percent rise in Telecom, at $2.40.
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