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NZ shares rise in global rally

NZ Newswire logoNZ Newswire 29/09/2016 Sophie Boot

© Getty Images New Zealand shares rose as global markets were encouraged by reports of a deal to ease the glut of crude oil. Orion Health Group, Fisher & Paykel Healthcare Corp and Auckland International Airport led the index.

The S&P/NZX50 Index gained 53 points, or 0.7 per cent, to 7.343.45. Within the index, 24 stocks rose, 19 fell and seven were unchanged. Turnover was $110.5 million.

Markets across Asia advanced in the afternoon's trading, following Wall Street's positive lead after reports that the Organisation of the Petroleum Exporting Countries (OPEC) has agreed to reduce its oil output to 32.5 million barrels per day from the current production levels of around 33.24 million bpd.

At 5pm New Zealand time, Australia's S&P/ASX200 was up 1 per cent and Japan's Nikkei 225 had gained 1.6 per cent.

"We have heard that rumour or talk before, there's nothing confirmed, but people are looking for signs of stability because if there's stability they get clarity for the commodity-related sector," Rickey Ward, New Zealand equity manager at JBWere, said.

Orion Health Group led the index, up 4.5 per cent to $3.50. It hit a six-month low of $3.29 on Wednesday, having fallen since its annual meeting last Thursday where chairman Andrew Ferrier told shareholders the strength of the kiwi is crimping revenue in local currency terms, meaning Orion will get less when sales are converted back into local currency.

Fisher & Paykel Healthcare Corp rose 2.9 per cent to $10.10, Auckland International Airport gained 2.4 per cent to $7.30, and Mercury New Zealand advanced 1.8 per cent to $3.045. Ward said offshore-owned stocks were getting better attention today.

Genesis Energy was the worst performer, down 5.4 per cent, or 12 cents, to $2.10. Tower fell 2.1 per cent to 94 cents.

"It's still under pressure, it hovered up near a dollar when the AFR article came out saying people may be circling it as an investment - no-one's shown their hand, so people are starting to think they're not there, though I'm not sure that is the case," Ward said. "The share price is representing an element of frustration."

Outside the main index, Intueri Education Group rose 20 per cent to 12 cents and Pumpkin Patch fell 8.9 per cent to 8.2 cents.

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