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NZ shares rise, led by Arvida

NZ Newswire logoNZ Newswire 24/05/2017

NZX signage  in Wellington.  (File photo) © Hagen Hopkins/Getty Images NZX signage in Wellington. (File photo) Arvida Group led the New Zealand share market higher on Wednesday as investors were cheered by positive earnings reports.

And like much of Asia, it shrugged off news Moody's Investors Service cut its sovereign credit rating on China.

The S&P/NZX 50 Index rose 37 points, or 0.5 per cent, to 7421.78. Within the index, 26 stocks rose, six were unchanged and 18 fell. Turnover was $135 million.

Bryon Burke, head of equities at Craigs Investment Partners, said the New Zealand market was in positive territory and was largely "order flow driven", in that investors were interested in specific stocks in the wake of the results.

Arvida Group, the retirement village company that listed in 2014, added 3.8 per cent to $1.36 after it posted a net profit of $53.7 million in the 12 months ended March 31, up from $24m a year earlier.

Restaurant Brands added 1.8 per cent to $5.72. Unite Union said it was making headway in its talks with the fast food operator following industrial action.

Contact Energy added 2.2 per cent to $5.16.

First NZ Capital this week said low inflows of water into the South Island's hydro-electricity storage lakes are expected to knock its earnings in the second half of the current financial year.

Tower narrowed its first-half loss as its underlying earnings improved. The stock added 4.9 per cent to $1.18.

Fonterra shed 0.5 per cent to $6.10. It lifted its forecast farmgate payout for this season, and raised its expectations for next season, as the world's largest exporter of dairy products benefits from rising prices.

Air New Zealand added 0.4 per cent to $2.87 after news its passenger numbers rose in April.

In the other direction, Fletcher Building remained out of favour, shedding 2.4 per cent to $7.91, marking the biggest decline on the benchmark index.

Mr Burke said investors will be keeping one eye on New Zealand's budget on Thursday for any possible news.

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