Sanford, Kathmandu lead the way as shares rise

File photo / Richard Robinson

Shares in outdoor clothing and equipment company Kathmandu Holdings closed up 14 per cent yesterday, after the company tipped a 20 per cent to 26 per cent rise in interim earnings from a strong sales performance in December and this month.

The 25c rise in Kathmandu shares to $2.05 was a standout in an otherwise flat sharemarket, with the NZX-50 index closing up 2.28 points, or 0.068 per cent, at 3346.02. Turnover was worth $68.1 million. There were 56 rises and 42 falls among the 115 stocks listed.

Brokers are updating forecasts for Kathmandu's annual result.

"They are not saying what the gross margin is but we have got high currencies in both Australia and New Zealand and clearly that is part of the story," one broker said.

The retailer imports goods from China. The broker said winter was the company's biggest sales period.

"The second half will be important for them."

Kathmandu's share price traded to $2.10 yesterday, which is a five-month high and near the price investors paid when the company listed on the ASX and NZX in November 2009.

The Warehouse, which experienced poor trading in the two months to January 2, rose 2c to $3.64.

Another standout was NZ Refining Co, which rose 12c to $4.68.

Among the leaders Fletcher Building fell 1c to $7.85, and Contact Energy fell 9c to $6.25, while Telecom rose 1c to $2.28.

Sanford rose 15c to $4.70, Hellaby rose 5c to $2.25 and Auckland Airport rose 3c to $2.24. NZX rose 5c to $1.73 and Rakon rose 3c to $1.25. Infratil rose 1c to $1.94.

Goodman Fielder rose 1c to $1.69.

Freightways fell 6c to $3.23 and Methven fell 5c to $1.69. Hallenstein Glasson fell 5c to $4.05 and Cavalier Carpets fell 5c to $3.20. Air NZ fell 2c to $1.43 and Tower fell 1c to $1.99.

The local market's flat performance contrasted with strong markets in Asia.

In the United States, stocks gained despite weak Citigroup results and concerns circling Apple after news of chief executive Steve Jobs' medical leave.

The Dow Jones industrial average gained 0.4 per cent to end unofficially at 11,837.93, the Standard & Poor's 500 Index rose 0.1 per cent to 1295.02, and the Nasdaq Composite Index added 0.4 per cent to 2765.85.

- NZPA