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NZ shares gain ahead of earnings season

NZ NewswireNZ Newswire 18/07/2016 Sophie Boot

New Zealand shares rose, led by Metro Performance Glass, Tower and Trade Me Group, with little corporate news to drive prices ahead of earnings season.

The S&P/NZX50 Index rose 33.08 points, or 0.5 per cent, to 7,105.96. Within the index, 27 stocks rose, 15 fell and nine were unchanged. Turnover was $139.5 million.

The local bourse had a positive day despite school holidays and a lack of local news, said Craig Stent, a director at Harbour Asset Management.

The consumer price index, which rose less than expected in the June quarter and saw the Kiwi dollar fall in response, was the key news of the day, Mr Stent said.

Movements in the Kiwi "do affect the way some of the dual-listed securities are priced - because they're listed in Australia, it tends to be the driver of some of the share prices, particularly the larger caps, because it's cheaper for Australian investors as they get priced higher in New Zealand."

Metro Performance Glass led the index, up 2.7 per cent to $1.89, a two-month high.

Tower rose 2.6 per cent to $1.385. It hit a three-week low of $1.315 on Thursday but has rebounded.

"There are a couple of large holders trying to sell that stock - Devon Funds Management filed down today, below 5 per cent, so that's probably why they've been under a bit of pressure," Mr Stent said.

"Maybe they've stopped selling today and that's why they've bounced back up."

Trade Me gained 2.4 per cent to $5.07, a price not seen since May 2013, while Spark New Zealand advanced 2.2 per cent to $3.73.

Steel & Tube Holdings gained 1 per cent to $1.97. The Sunday-Star Times has reported China is trying to 'heavy' the New Zealand government over key exports such as dairy, wool and kiwifruit into dropping an inquiry into cut-price Chinese steel.

Vector was the worst performer, falling 1.5 per cent to $3.36.

Argosy Property shed 1.3 per cent to $1.145, and Warehouse Group dipped 1.1 per cent to $2.78.

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