NZ shares rise, led by Xero, Air NZ
Fri, 31 Aug 2012 10:04p.m.
New Zealand shares rose, led by Xero, Air New Zealand and Trade Me after the earnings season highlighted how many companies are managing to find growth in a tepid economy.
The NZX 50 Index rose 37.11 points, or 1 per cent, to 3666.68. Within the index, 34 shares rose, six fell and 10 were unchanged. Turnover was about $117 million.
"We had seen the market weaken leading into the reporting season - all the stocks had to do was meet guidance and they went up, like Air New Zealand," said James Smalley, client adviser at Hamilton Hindin Greene.
"Investors should be satisfied."
Air New Zealand shares rose 7.4 per cent to $1.09, the highest since September last year.
The national carrier slated for a government selldown beat estimates with a 12 per cent drop in annual profit to $71 million.
That beat the consensus analyst forecast of $44.5 million.
"Maybe the mixed ownership model isn't too bad," Mr Smalley said.
"It obviously has a dominant domestic base - its uses that base to branch further.
"It is hard to see a competitor coming in because we are such a small market."
Xero, the cloud-based accounting platform provider, climbed 7.6 per cent to $4.79. The stock has gained about 58 per cent this year.
The Wellington-based company which joined the NZX 50 in June has doubled its employees, hiring 128 new staff in the calendar year and is seeking 100 more before April next year.
Trade Me rose 2.9 per cent to $3.89. The online auction site is working with payment solutions software firm MYOB to look at ways to integrate its services with its website.
The decline was led by Oceanagold down 2.3 per cent to $3.02.
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