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Mainfreight earnings helps NZ shares rise

NZ NewswireNZ Newswire 26/05/2016 Sophie Boot

Air New Zealand was the best performer on the NZX 50 © Brendon O'Hagan /Bloomberg News Air New Zealand was the best performer on the NZX 50 New Zealand shares gained as Mainfreight posted stronger full-year earnings, giving investors more confidence about its outlook while Air New Zealand rebounded and Metro Performance Glass fell.

The S&P/NZX50 Index advanced 39.85 points, or 0.6 per cent, to 6,947.89. Within the index, 30 shares rose, 13 fell and seven were unchanged. Turnover was $141.9m.

Mainfreight gained 2.7 per cent to $16.92. The transport and logistics group reported a 6.3 per cent gain in full-year profit as improved trading in New Zealand, Asia and Europe was offset by weaker results in Australia and the Americas.

"It was slightly ahead of what we were expecting so that's positive," said Mark Lister, head of private wealth research at Craigs Investment Partners. "Australia was a little bit weak but overall it was a pretty decent result."

Air New Zealand was the best performer on the index, gaining 3.5 per cent to $2.09. It hit an eighteen-month low of $2.02 on Wednesday and has dropped 31.6 per cent this year.

"It has probably got a bit oversold," Lister said. "It's been pretty beaten up over the past couple of months for a range of reasons, and it's a bit of a bounce."

Kathmandu rose 2 per cent to $1.55 while Fletcher Building advanced 1.9 per cent to $8.74.

Metro Glass was the worst performer, down 4.4 per cent to $1.75. The country's largest glass processor posted its first full-year profit as a listed company, meeting guidance, as it benefited from increased construction activity while coping with what it called supply and execution issues.

Genesis Energy dropped 1.5 per cent to $2.02, while Trustpower shed 1.4 per cent to $7.88.

Outside the main index, Trilogy International gained 4.4 per cent to $4.23. The skincare and home fragrance company, which was last week asked by the NZX to explain a jump in its stock price, says it has acquired 25 per cent of Chilean rosehip producer Forestal Casino for US$8 million in cash and shares, giving it certainty of supply for an oil used in skincare products. It's due to report its annual earnings on Friday.

Gentrack Group increased 3.8 per cent to $2.75.

Eroad advanced 1.6 per cent to $2.50, Energy Mad gained 22.6 per cent to 6.5 cents and Sanford rose 3.3 per cent to $5.89.

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