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

NZ shares rise before Brexit vote

NZ NewswireNZ Newswire 23/06/2016 Sophie Boot
© Getty Images

New Zealand shares rose as markets speculated the UK will vote to remain in the European Union. Vital Healthcare Property Trust and Summerset Group gained, while Nuplex Industries dropped as its acquisition by Allnex may be delayed

The S&P/NZX 50 Index gained 39.6 points, or 0.6 per cent, to 6,821.35. Within the index, 23 stocks rose, 17 fell and 10 were unchanged. Turnover was $122.3 million.

"There seems to be a bit more volume on the buy side - investors may be thinking that although the polls are calling it close, a lot of people are looking at how the bookies have been pricing it," said James Smalley, director at Hamilton Hindin Greene.

"These guys are putting their money on the line, the professional punters certainly think the likelihood is Britain will stay and maybe that's the reason we're seeing some pretty good strength in our market today."

Brexit voting starts at 7am in the UK, or 6pm New Zealand time, and closes at 10am on Friday morning NZ time.

Vital Healthcare led the index higher, gaining 2.6 per cent to $2.185. It plans to raise $160 million to pay down debt, giving it headroom to pursue a pipeline of developments on both sides of the Tasman.

Summerset Group rose 2.3 per cent to $4.40 and Fletcher Building gained 2.2 per cent to $8.26.

Nuplex fell 1.5 per cent to $5.27.

Sky TV was the worst performer, down 2 per cent to $4.83, while Heartland Bank dropped 1.6 per cent to $1.26.

Outside the main index, Pumpkin Patch rose 4.6 per cent to 6.8 cents.

CBL Corp gained 0.8 per cent to $2.51. The credit surety and financial risk insurer plans to buy France's Securities and Financial Solutions Europe SA (SFS) for 94 million euros, taking over its biggest customer in a deal expected to lift earnings.

Michael Hill International was unchanged at $1.15. The shareholders have voted overwhelmingly in favour of a restructuring plan that would shift the jewellery chain into a new company incorporated in Australia and listed on the ASX.

Intueri Education Group was unchanged at 35 cents. It must repay $1.47 million plus tax to the Tertiary Education Commission (TEC) after an investigation into its dive school showed some student enrolments between 2009-2014 could not be validated and some courses under-delivered against their funding agreement.

image beaconimage beaconimage beacon