Market commentaries

WELLINGTON: New Zealand shares rose yesterday, led higher by Z Energy on lingering optimism over the transport fuels company’s outlook and Precinct Properties which is tapping the listed debt market.

But Tower hit a record low.

The S&P/NZX50 Index gained 31.57 points, or 0.4%, to 8008. Within the index, 23 stocks rose, 20 fell and seven were unchanged. Turnover was $284 million.

Z Energy led the index, up 3.5% to $7.48. Last Thursday, the company reported it had lifted firsthalf profit 10% as the acquisition of Chevron’s retail network swelled sales, and expects to pay bigger dividends under a new policy.

‘‘All the analyst reports are out this week and that’s given it a bit of a nudge,’’ said Greg Easton, adviser at Craigs Investment Partners.

‘‘It was a good result and their forward looking dividend and cash flow is quite attractive. It has been viewed as one of those stocks that are in danger of disruptive technology challenging its business model, so that has given some comfort.’’

Precinct Properties gained 2.3% to $1.315. The listed commercial property investor is currently raising up to $100 million from a sevenyear bond offer to repay bank debt.

‘‘There is a lot of money out there looking for a home, and when term deposits are 3.5% but you can get 4.5% from essentially a mortgage over a property portfolio like that it’s quite attractive.’’

Kiwi Property Group rose 0.4% to $1.325. The company, which manages a $3 billion portfolio of shopping centres and office buildings, is selling its Majestic Centre office tower in Wellington to Investec Australia Property Fund for $123.2 million.

Contact Energy was the worst performer, down 3% to $5.58.

Outside the benchmark index Tower shares fell 7.9% to 70c as investors weigh up whether the $70.8m of new capital they’re being asked to provide will provide enough of a buffer against lingering Canterbury earthquake claims.

A The Australian sharemarket took its sharpest fall in seven weeks yesterday as profittakers moved in, selling off across the market and dropping the benchmark index back under 6000 points.

At the close the benchmark S&P/ASX200 was down 53.1 points, or 0.88%, at 5968.7 points, after the index pushed through 6000 points on November 7, the first time it had achieved the mark in almost a decade. The broader All Ordinaries index was down 48.5 points, or 0.8%, at 6048.7 points. — Scoop/ AAP