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Investore helps extend run of records

By Edwin Mitson

Fletcher Building's share price rose 1.4 per cent to $8.89 yesterday. Photo / Natalie Slade
Fletcher Building's share price rose 1.4 per cent to $8.89 yesterday. Photo / Natalie Slade

New Zealand shares extended their run of records, led by real estate owner Investore Property which debuted on the market after being spun out of Stride Property.

The S&P/NZX 50 Index rose 17.01 points, or 0.2 per cent, to 7,079.46 - a new record close. Within the index, 27 stocks gained, 17 fell, and seven were unchanged. Turnover was $148 million.

Investore jumped 8.1 per cent to $1.61, leading the benchmark higher in its debut. The company raised $189 million at $1.49 a share in an initial public offering to help fund its acquisition of 14 Countdown supermarket sites.

Investore will trade on the NZX 50 until at least September before the next portfolio update.

"The highlight has been Investore, which has gone on extremely well," said Matt Goodson, managing director at Salt Funds Management, which holds 7.4 per cent of Investore. "The key thing that really seems to be attracting people is the very long WALT (weighted average lease term) of the portfolio."

Stride shares dropped 16 per cent to $1.98, reflecting the Investore divestment, and was the biggest fall on the day.

The dual-listed Australian banks gained, with Australia & New Zealand Banking Group up 2.5 per cent to $25.40 and Westpac Banking Corp rising 1.6 per cent to $30.68.

Fletcher Building, which has operations in Australia, rose 1.4 per cent to $8.89, while SkyCity Entertainment Group gained 1.8 per cent to $4.65.

Port of Tauranga increased 0.3 per cent to $19.65 after the Kotahi joint venture between Fonterra Cooperative Group and Silver Fern Farms said it was launching a new weekly service to Asian export markets through the Bay of Plenty hub, using a container ship with twice the capacity of usual vessels.

Kathmandu Holdings gained 3.1 per cent to $1.69 after its biggest shareholder, Briscoe Group, said it would defend a $3.2 million claim for costs by the outdoor equipment chain. Kathmandu is seeking costs from the homeware and sports store retailer over last year's failed takeover bid. Briscoe shares rose 1.2 per cent to $3.29.

Among stocks to fall, real estate investors Kiwi Property Group dropped 2 per cent to $1.505, Goodman Property Trust was down 1.1 per cent to $1.305, Property for Industry slipped 0.6 per cent to $1.62, and Precinct Properties New Zealand decreased 0.4 per cent to $1.245.

Sky Network Television fell 1 per cent to $4.85. This came after a government paper on legislation regulating the teleco sector said the pay-TV operator's proposed merger with Vodafone NZ raised questions about the safeguards in place to ensure "net neutrality", meaning all internet traffic is treated equally.

Chorus rose 0.9 per cent to $4.31 with the review confirming the Government's plans to bring the teleco's regulated pricing in line with electricity lines companies. Spark New Zealand, Chorus's biggest customer, was unchanged at $3.82.

Outside the benchmark index, Turners climbed 5 per cent to $3.15 after the financial services firm said it will buy Auckland used car importer and dealer network Buy Right Cars for $15.3 million in cash and scrip.

T&G Global shares jumped 8 per cent to $2.70 after Chinese fruit exporter Golden Wing Mau Agricultural Produce bought a 19.99 per cent stake in the New Zealand fruit exporter on Monday at $2.95 a share.

Methven was unchanged at $1.28. The tapware maker yesterday disclosed the founder of its Chinese manufacturing division sold his 5.85 per cent stake for $5 million earlier this month at $1.17 a share, a discount to the $1.34 price at which they had been trading.

- BusinessDesk

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