Rakon, Telecom lead rise but consumer confidence down

Brent Robinson, managing director of Auckland-based technology component manufacturer Rakon. Photo / Steven McNicholl

New Zealand shares rose yesterday as Rakon climbed from a record low and Telecom gained to its highest level since the spin-off of its Chorus network unit last week.

Pumpkin Patch led retailers lower after figures showed weak consumer sentiment.

The NZX 50 Index rose 1.51 points, or 0.04 per cent, to 3271.46. Within the index, 29 stocks fell, 12 rose and 10 were unchanged. Turnover was $78 million.

Rakon rose 9.1 per cent to 48c. Analysts have a share price target of 62c, based on a Reuters survey.

Pumpkin Patch, the children's clothing chain, sank 6.4 per cent to 59c, near the record low it reached on December 1. The ANZ-Roy Morgan Consumer Confidence measure, released yesterday, showed optimism faded for a fourth straight month in December.

The index fell 0.6 points to 108.4 in December and is 8 points below the historical average. Separately, government figures showed Kiwis wound back spending on credit and debit cards in November, suggesting a slow start to the Christmas holiday.

Jeweller Michael Hill fell 3.3 per cent to 88c. Warehouse Group, the biggest retailer on the NZX 50, fell about 1 per cent to $3.11.

Telecom rose 1.7 per cent to $2.115, while Chorus slipped 0.3 per cent to $3.

Among other stocks, Contact Energy climbed 2.3 per cent to $5.40 and Fletcher Building declined 1.6 per cent to $6.08.

Sanford, the fishing company facing indictments over a vessel detained in American Samoa, fell 2.3 per cent to $3.80.

Skellerup shares fell 1.5 per cent to $1.35 after ACC emerged as a substantial shareholder, spending $9.2 million on almost 7 million shares. That came as former substantial shareholder Balmain Trust and related parties sold out of its 7.1 per cent stake, which consisted of 13.7 million shares.