Stock index up on back of global rally

OceanaGold shares rose 5.7 per cent yesterday to close at $2.21.

Shares rise after oil price rebound and positive statements from US Fed, but new listing Arvida has flat debut

New Zealand shares rose yesterday, led by OceanaGold and Air New Zealand, following a global rally as a rebound in oil prices and positive statements from the US Federal Reserve gave investors hope for the international economy. Arvida Group was flat in its NZX debut.

The NZX 50 index rose 21.90 points, or 0.4 per cent, to 5518.48. Within the index, 31 stocks rose, 10 fell and nine were unchanged. Turnover was $133 million.

US Federal Reserve chairwoman Janet Yellen indicated higher US interest rates were coming, and was more upbeat about the world's biggest economy. Meanwhile, overnight Wall St rose as oil, which has halved in value since the start of the year, advanced 5 per cent, stoking optimism the plunge in prices has found a floor. Markets across Asia climbed. Japan's Nikkei 225 index jumped 2.3 per cent and Hong Kong's Hang Seng Index advanced 1 per cent in afternoon trading, while Australia's S&P/ASX 200 closed up 0.9 per cent.

Triple-listed miner OceanaGold led the benchmark index higher, advancing 5.7 per cent to $2.21. Air NZ climbed 2.8 per cent to $2.58. Diligent Board Member Services, the governance app developer, gained 2.1 per cent to $4.91.

"We're very much following the offshore markets," said Grant Williamson of Hamilton Hindin Greene.

Outside the benchmark index, Arvida was unchanged at 95c in its debut on the NZX which saw the retirement village operator raise $80 million in capital. The company says its higher proportion of care beds makes it a different investment offer from its already listed rivals, Summerset Group Holdings, Metlifecare and Ryman Healthcare. Metlifecare advanced 3.2 per cent to $4.51. Summerset was unchanged at $2.84. Ryman fell 0.6 per cent to $8.20.

NZX rose 0.9 per cent to $1.14. The stockmarket operator has had 16 IPOs on its capital markets this year.

Spark, formerly Telecom, fell 0.2 per cent to $3.11. The telecommunications provider announced it would spend US$32 million in a US$70 million project with Vodafone New Zealand and Telstra to build a transtasman submarine broadband cable. Separately, the company announced its video on-demand service, Lightbox, had entered a joint venture with Coliseum Sports Media New Zealand as it looked to gain a foothold in the "crowded online TV marketplace".

Sky Network Television, the dominant pay TV provider, rose 0.3 per cent to $5.82. Sky is launching an online video service of its own.

Outside the benchmark index, Finzsoft Solutions dropped 15 per cent to $5 after its managing director, Andrew Holliday, said he intended to make a discounted takeover bid at $3 a share for the financial software developer in partnership with a Bermuda IT company.

Tourism Holdings rose 1.1 per cent to $1.77 after the campervan rental company lifted its earnings forecast again.

Livestock Improvement Corp, which provides testing and artificial breeding services to the dairy industry, was unchanged at $6.10 after it said it had bought a majority interest in its Brazilian genetics distributor, NZ Brasil Genetics Producao Animal, for an undisclosed sum.