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NZ shares rise as Steel & Tube rebounds

NZ NewswireNZ Newswire 3/06/2016 Sophie Boot

New Zealand shares rose as Steel & Tube Holdings rebounded from Thursday's selldown and as Metro Performance Glass gained.

The S&P/NZX 50 Index gained 21.26 points, or 0.3 per cent, to 7,024.38. Within the index, 28 stocks rose, 13 fell and nine were unchanged. Turnover was $214.8 million

The biggest gainer was Steel & Tube, up 7.1 per cent to $1.97. It hit a 15-year low on Thursday after saying it was in talks with "multiple agencies" in New Zealand and China over pile casing that was to be used in bridges for the Huntly bypass that weren't up to scratch.

On May 18, Steel & Tube cut its earnings guidance by 10-to-15 per cent and in April it agreed to only sell seismic reinforcing steel mesh that had been independently tested. The Commerce Commission is currently investigating possible misrepresentations of the mesh's performance characteristics that could breach the Fair Trading Act.

"The bargain hunters have come into the stock today, but I think we're likely to see a relatively volatile performance in Steel & Tube until this issue has been completely sorted out," said Grant Williamson, director at Hamilton Hindin Greene. "It's certainly disappointing from an investor's point of view, it's not a good look at all."

Metro Glass gained 3.5 per cent to $1.79, with 15.7 million shares traded making it the busiest stock on the index.

Outside of that, the market was quiet with little news but positivity carried from Australia, Williamson said, where the S&P/ASX 200 was up 0.8 per cent at 5:15pm New Zealand time.

Fonterra Shareholders Fund was unchanged at $5.70.

Ebos Group rose 1.8 per cent to $16.80, A2 Milk Co gained 1.3 per cent to $1.54, and Trade Me advanced 1.3 per cent to $4.74.

Heartland Bank was the worst performer, down 1.6 per cent to $1.25. Kathmandu Holdings dropped 1.3 per cent to $1.49 and Orion Health Group declined 1.3 per cent to $5.24.

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