NZPA

NZ sharemarket rises after PGG Wrightson news

Friday October 16, 10:40 AM

Shares in rural services firm PGG Wrightson climbed 23 percent in early trading after the company announced it would raise $36 million through an issue of new shares to China-based Agria Corporation.

Soon after the New Zealand sharemarket opened today Wrightson shares were up 15c to 80c, having hit a year low of 59c earlier this month.

Restaurant Brands' shares also did well early, rising more than 5 percent after the company reported an 89 percent rise in half year net profit, excluding non-trading items, to $9.2m.

Sales growth at KFC and Pizza Hut was only partially offset by a decline in Starbucks Coffee sales.

Shortly after the market opened Restaurant Brands shares were up 7c to a four-year high of 140, as the overall market chalked up a solid start.

Around 10.15am the benchmark NZSX-50 index was ahead 11.57 points to 3202.86, after closing up 4.8 points yesterday.

Other shares rising early included Contact Energy up 4c to 609, Sky City up 4c to 340, Fletcher Building up 4c to 793, The Warehouse up 2c to 445, Nuplex up 2c to 241, and Kiwi Income Property Trust up 2c to 112. Telecom lifted 1c to 258.

In the United States, the Dow industrials and the S&P 500 climbed to 2009 closing highs, buoyed by energy stocks as oil prices jumped, but financials retreated as investors panned results from Goldman Sachs and Citigroup.

While Goldman Sachs Group and Citigroup Inc's results exceeded forecasts, they failed to meet the lofty standard set the previous day by JPMorgan Chase & Co, the first major bank to report earnings.

"It appears the market is reacting to the energy inventory data, the strength in crude and the idea that the economic recovery is firming," said Nick Kalivas, vice president of financial research and senior equity index analyst at MF Global in Chicago.

The Dow Jones industrial average gained 0.5 percent to close at 10,062.94, the Standard & Poor's 500 Index rose 0.4 percent to finish at 1096.56, while the Nasdaq Composite Index added 0.1 percent to end at 2173.29.

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