You are using an older browser version. Please use a supported version for the best MSN experience.

Local shares rally with Kathmandu in front

NZ NewswireNZ Newswire 8/08/2016 Sophie Boot

© AAP Image New Zealand shares rallied with global markets after positive leads from the US, with the local market led by Kathmandu Holdings and ANZ.

The S&P/NZX50 Index rose 39.88 points, or 0.6 per cent, to 7,348.3. Within the index, 32 stocks rose, 11 fell and eight were unchanged. Turnover was $121.7 million.

Kathmandu led the index, up 4.3 per cent to $1.93. Last week, the retailer said its annual profit rose as much as 67 per cent on fatter margins.

Net profit was between $33 million and $34 million in the 12 months ended July 31, up from $20.4 million a year earlier and within Kathmandu's upgraded June guidance of between $32 million and $35 million. The stock has gained 11 per cent since the June announcement.

"They've come closer to the end of the financial year so there's a bit more confidence around what they've seen within their business, and they've changed the way they approach sales programmes, particularly in these key sales periods they have," said Craig Stent, director at Harbour Asset Management.

The dual-listed banks advanced as the S&P/ASX 200 outpaced the local index, up 0.8 per cent at 5pm New Zealand time. ANZ gained 2.6 per cent to $27.49 and Westpac rose 1.8 per cent to $32.60.

"The general market's positive with what happened on Wall Street on Friday their time - job numbers came out and looked pretty strong, probably surprising everyone, the US markets are up about 1 per cent so there's follow on from that in our region," Stent said.

Fletcher Building gained 2.2 per cent to $9.81, Heartland Bank rose 2.2 per cent to $1.40 and NZX advanced 2 per cent to $1.04.

Mercury New Zealand was the worst performer, down 2 per cent to $3.02.

Steel & Tube Holdings fell 1.9 per cent to $2.07 and Vector dropped 1.7 per cent to $3.42.

Outside the main index, Augusta Capital rose 1.9 per cent to $1.10.

Michael Hill International dropped 1.3 per cent to $1.49.

IkeGPS, the laser measurement tool maker, is in a trading halt pending a placement of shares to institutional investors in Australia and New Zealand. The shares last traded at 69 cents before being halted, valuing the company at $34.8 million. The stock has declined 1.4 per cent this year.

image beaconimage beaconimage beacon