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NZ shares rise while Fletcher drops again

NZ Newswire logoNZ Newswire 23/03/2017 Sophie Boot
File Photo: A member of an abseiling team subcontracted by Fletcher Construction © Brendon O'Hagan/Bloomberg File Photo: A member of an abseiling team subcontracted by Fletcher Construction

New Zealand shares rose on Thursday, led by Metro Performance Glass and A2 Milk Co, while Fletcher Building began falling again after giving up dividend rights.

The S&P/NZX50 Index rose 1.72 points, or 0.02 per cent, to 7,062.55. Within the index, 22 stocks rose, 19 fell and nine were unchanged. Turnover was $186.5 million.

Metro Performance Glass led the index, up 4.3 per cent to $1.45, continuing its recovery after weakness following its results. A2 Milk Co gained 2.5 per cent to $2.84, Sky Network Television rose 2.4 per cent to $3.78 and Ryman Healthcare advanced 1.8 per cent to $8.35.

Fletcher Building was the worst performer, down 5 per cent or 42 cents to $7.92, after giving up rights to a 2.7 cent final dividend.

The shares plunged over 10 per cent on Monday after it unexpectedly cut full-year earnings guidance by $110 million because of losses related to construction projects.

"It's a reasonable volume day, it got up to 10 million on the 20th and for the past few day's we've had high 4s, low 5s, which is quite a lot of volume - at the higher end of the range," said Shane Solly, director, portfolio manager & research analyst at Harbour Asset Management.

''There's a bit of disappointment rolling through. Perhaps it's investors taking a view on New Zealand in a broader context, saying it's been a very strong economy, a very strong market, and we'll just take some profits."

Heartland Bank fell 2.4 per cent to $1.61. The New Zealand Shareholders Association has criticised Heartland over a $40 million of capital completed this month after its discounted share purchase plan closed more than three times oversubscribed.

Spark New Zealand declined 0.4 per cent to $3.385, while TeamTalk rose 6.4 per cent to 83 cents.

Spark says an independent valuation range for its takeover target TeamTalk, lacks credibility and the top end of the range amounts to an "absurd premium". TeamTalk shares surged after the report was released and are now higher than Spark's offer price.

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