Westpac was one of the two banks leading the gains. Photo / Richard Robinson
Westpac was one of the two banks leading the gains. Photo / Richard Robinson
New Zealand shares rose yesterday, with OceanaGold, ANZ, Westpac and AMP leading the gains as equities reflected more optimism over Europe.
The NZX-50 Index rose 18.09, or 0.5 per cent, to 3346.21. Within the index, 61 stocks rose, 46 fell. Turnover was a lower-than-average $77 million.
Shares in Australia ralliedmore strongly with New Zealand's "lower beta" ensuring the local bourse caught a smaller wave, said James Lindsay, equities manager at Tyndall Investment Management. Resources and financials, which had suffered most amid European debt fears, "are leading the rebound in Australia".
Lindsay said local investors have been diverted by the book-build for retirement village operator Summerset, which is seeking to raise as much as $136 million in an initial public offering. Funds controlled by Quadrant Private Equity, which own 97 per cent of Summerset, is selling 30 per cent of its holding.
The IPO is relatively small beer compared to the looming sell-down of Fairfax's Trade Me business, which may raise $500 million, while the sale of shares in state-owned enterprises may be $1.5 billion.
Telecom gained 0.8 per cent to $2.60. NZX was unchanged at $2.36 after the announcement that chief executive Mark Weldon would step down after almost a decade running the company.
NZ Farming Systems Uruguay, was unchanged at 65 cents after announcing it has abandoned plans to raise US$120 million through a rights issue after minority shareholders said they wouldn't participate.
The company planned to use the funds to pay for new development and repay the US$85 million loan to Olam International which owns a controlling stake of 85.9 per cent in NZFSU, having fallen short in a full takeover attempt.
