NZ shares edge up, Fletcher Building leads market higher

Fletcher Building led the market higher, up 2.2 per cent $6.49. Photo / File

New Zealand shares edged higher as improved confidence lifted building and tourism stocks. Rising oil prices kept investors nervous about higher energy costs for companies, and was identified as a headwind for Air New Zealand at its annual meeting.

The S&P/NZX 50 index increased 3.89 points, or 0.04 per cent, to 9,349.85. Within the index, 23 stocks gained, 18 fell and nine were unchanged. Turnover was $177.4 million.

Air New Zealand's annual meeting was the highlight for the day and came in the week Brent crude prices rose above US$80 a barrel for the first time in four years. The national carrier enjoyed record earnings in recent years but has warned rising jet fuel costs will weigh on earnings. The shares slipped 0.3 per cent to $3.06.

"It's going to be an increasing headwind for the global airline industry as their hedges roll off and oil prices remain high," said Greg Smith, head of research at Fat Prophets.

Auckland International Airport fell 0.8 per cent to $7.39. The airport operator raised $150m through a six-year bond offer.

If energy costs continue to rise, Smith said that will probably keep weighing on global equity markets, especially with the Federal Reserve poised to hike interest rates tomorrow and likely to do so again in December.

Z Energy and New Zealand Refining were both unchanged at $7.25 and $2.58 respectively. Tourism Holdings increased 1.4 per cent to $5.68, Mainfreight gained 1.3 per cent to $30.21, and Freightways rose 0.9 per cent to $7.75.

Fletcher Building led the market higher, up 2.2 per cent $6.49. Chorus increased 1.7 per cent to $4.84, while Arvida Group gained 1.5 per cent to $1.36 and Scales Corp advanced 1.5 per cent to $4.90.

Rate-sensitive power companies and property investors were generally lower after a recovery in business confidence reduced the prospect of a rate cut in the coming year.

Kiwi Property Group declined 0.4 per cent to $1.41, Property For Industry fell 0.3 per cent to $1.81, Contact Energy slipped 0.5 per cent to $5.85 and Meridian Energy decreased 0.6 per cent to $3.35.

Synlait Milk dropped 2.8 per cent to $10.95, the biggest decline on the benchmark index, while Fisher & Paykel Healthcare fell 1.8 per cent to $14.90.

Outside the benchmark index, NZME fell 1.5 per cent to 66 cents after the Court of Appeal released its full judgment upholding earlier rulings blocking a planned media merger with Stuff.

NZ Windfarms rose 4.1 per cent to 12.8 cents after the company said it was reviewing its business to deliver value to shareholders, including the possibility of selling the Te Rere Hau windfarm.

Turners Automotive Group fell 1 per cent to $2.87 after chairman Grant Baker told shareholders the stock was undervalued relative to broker estimates and core metrics.