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Tegel's news helps local stocks fly high

NZ NewswireNZ Newswire 18/08/2016 Jonathan Underhill

New Zealand shares rose after Tegel Group said it had been cleared to export raw poultry to Australia, Trade Me Group reported stronger annual revenue and investors cheered Spark's promise of further special dividends in 2017.

The S&P/NZX 50 Index gained 30.10 points, or 0.4 per cent, to 7,385.12. Within the index, 27 stocks rose, 22 fell and two were unchanged. Turnover was $169 million.

Tegel rose 5.5 per cent to a record $1.73 after New Zealand's largest poultry company said it had worked alongside the Ministry for Primary Industries to secure improved access to the Australian market, where it had previously only been permitted to export fully cooked chicken. The Australian poultry market is estimated to be worth A$7.1 billion.

"It's certainly a positive opportunity, said Rickey Ward, NZ equity manager at JBWere. "Whether it turns into any material earnings upgrade it's far too early to predict. It's a much bigger market."

Trade Me rose 5.1 per cent to $5.40. The auction website reported a 9.2 per cent gain in full-year revenue to $218 million, although net profit fell 6.5 per cent to $74.9 million including an impairment charge against its online dating business FindSomeone and its share of losses from lending platform Harmoney.

Spark gained 2.9 per cent to $3.865 after the telecommunications retailer confirmed a final dividend of 11 cents per share and a special dividend of 1.5 cents, taking the total payment to 25 cents in the year. Chairman Mark Verbiest said the company plans to repeat that return of 22 cents in ordinary dividends and a 3 cent special dividend in 2017. Profit fell 1.3 per cent as the company paid more tax and had weaker revenue.

Port of Tauranga rose 0.1 per cent to $19.34 after the nation's busiest port company announced plans to return $140 million to shareholders over four years, starting with a special dividend of 25 cents, fully imputed, in addition to a final ordinary dividend of 30 cents a share. The port company also plans a five-for-one share split to boost liquidity. Full-year profit fell 2.3 per cent.

Fisher & Paykel Healthcare fell 3.2 per cent to $10.15 and TrustPower fell 1.7 per cent to $8.

Precinct Properties New Zealand rose 0.8 per cent to $1.285, Fletcher Building rose 2.2 per cent to $10.38, and Skellerup Holdings rose 4.3 per cent to $1.46.

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