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NZ shares rise as Air NZ hits 16-year high

NZ Newswire logoNZ Newswire 1/06/2017 Sophie Boot

New Zealand shares rose on Thursday, led by Air New Zealand and Restaurant Brands.

However, Intueri Education Group's shares were suspended as the company went into voluntary administration.

The S&P/NZX 50 Index gained 32 points, or 0.4 per cent, to 7450.9. Within the index, 21 stocks rose, 18 fell and 11 were unchanged. Turnover was $143.5 million.

Air New Zealand was the best performer, up 5.2 per cent to $3.02, the highest it's traded since August 31, 2001.

The airline lifted its full-year guidance at an investor day presentation as it benefits from lower jet fuel prices and improving revenue.

Based on the current market environment and jet fuel prices the company said its 2017 earnings before taxation are likely to exceed $525 million.

"A lot of analysts doubted whether they could replicate last year's result but it looks like they've got a lot of those variables that influence profitability under control, particularly fuel pricing, it looks like oil is going to stay below that $50 range and that's positive for Air New Zealand," said Peter McIntyre, senior investment advisor at Craigs Investment Partners.

Restaurant Brands gained 4.9 per cent to $5.95, a record. The fast-food operator boosted first-quarter sales by 67 per cent to $161.2m after expanding in Australia, Hawaii, Guam and Saipan. On a same-store basis, sales rose 7.2 per cent.

"Their acquisitions have added to total revenue but I think market participants were really impressed with the same-store sales growth and the ability of management so far to execute those transactions," Mr McIntyre said.

Infratil was the worst performer, down 2.8 per cent to $2.955, while Westpac declined 1.9 per cent to $31.65 and Trustpower fell 1.7 per cent to $5.15.

Chorus dipped 0.7 per cent to $4.485. The telco responded positively to news the government announced the final details of the reform package for the Telecommunications Act.

Intueri Education Group was suspended at 1.1 cents. It has been placed into voluntary administration.

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