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Tegel leads the way as NZ shares rise

NZ Newswire logoNZ Newswire 26/01/2017 Sophie Boot

New Zealand shares gained, led by Tegel Group Holdings, Sky Network Television, while Air New Zealand dropped back amidst analyst downgrades.

The S&P/NZX50 Index rose 22.41 points, or 0.3 per cent, to 7,114.32. Within the index, 27 stocks rose, 11 fell and 12 were unchanged. Turnover was $105 million.

Poultry firm Tegel led the index, up 3 per cent to $1.38, after gaining 3.1 per cent a day earlier.

The shares hit a record low of $1.29 in mid-December after the company said it would miss its forecast earnings as a glut of chicken keeps a lid on domestic prices and rising freight costs squeezes margins.

Shares recovered as 2016 ended, but weakened again in January.It listed on the NZX in May at $1.55.

"It's been sold off fairly heavily all year, yesterday may have been only the second or third day the stock had gone up - it's been on a bit of a continuous slide, so some people may be seeing a bit of value there,"said Robert Garden from Craigs Investment Partners.

"The competitive space in the sector is pretty tight at the moment. It's still early days as a listed company, the way the stock's moved they're going to need to get more runs on the board before faith comes back for investors."

Sky Network Television rose 1.8 per cent to $4.62, Restaurant Brands New Zealand gained 1.5 per cent to $5.47, and Spark New Zealand advanced 1.4 per cent to $3.535.

Air New Zealand was the worst performer, down 3.6 per cent to $2.12.

It said on Wednesday that passenger revenue in the first six months of the company's financial year fell sharply, even when the impact of foreign exchange fluctuations are eliminated.

Analysts at Craigs Investment Partners have downgraded the share price target for Air New Zealand to $2.09 from $2.17 and warned its earnings before tax is likely to come in at the lower end of expectations. T

Vector dropped 2.1 per cent to $3.20 while Investore Property declined 1.4 per cent to $1.38.

Manuka hone products maker Comvita dropped back 1.4 per cent to $7.20 a day after leading the market's gains after plunging 17 per cent from $7.83 on Monday when it warned annual earnings will tumble by about two-thirds.

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