NZ shares rise paced by Chorus and Nuplex

The NZX 50 Index rose 22.46 points, paced by Nuplex which rose as high as $2.83, the highest for almost a year.

17 August 2012

New Zealand shares rose, paced by Nuplex Industries after the specialty chemical maker's earnings growth stalled as it predicted.

Chorus gained after the Commerce Commission backed off on plans to investigate the networks pricing.

The NZX 50 Index rose 22.46 points, or 0.64 per cent, to 3639.65.

Within the index, 36 stocks rose, seven fell and seven were unchanged. Turnover was a larger-than-average $130 million.

Nuplex rose 2.2 per cent to $2.73 and has a dividend yield of 10.2 per cent.

The shares rose as high as $2.83, the highest since October 2011 after the specialty chemicals maker said earnings before interest, tax, depreciation and amortisation were $131 million in the 12 months ended June 30, little changed from a year earlier.

"It was a pretty solid - it is a cheap stock which has a good dividend yield," said James Smalley, a broker at Hamilton Hindin Greene.

"The result had no nasty surprises."

Chorus rose 3.9 per cent to $3.19. The Commerce Commission has backed off the view that it needs to investigate a service on Chorus's copper telecommunications network as it mulls the regulated pricing regime for the ageing lines.

Fletcher Building gained 1.2 per cent to $6.55.

Cavalier was up 2.9 per cent to $1.75. Cavalier Wool Holdings is chasing a 64 per cent stake in Wool Services International which was owned by the Allan Hubbard-related companies Plum Duff and Woolpack Holdings, which are in receivership.

The gainers were led by, PGG Wrightson, New Zealand's largest agricultural company, up 6.6 per cent to $32 cents.

The decline was led by Telecom, the largest company on the exchange, down 2.5 per cent to $2.68. The stock has fallen from its highest level since August 2008.

Michael Hill International fell 0.9 per cent to $1.08.

NZN

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