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NZ shares snap three-day slide

By AAP
16:12 AEST Thu Dec 6 2012
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New Zealand shares rose, snapping a three-day slide as equity markets across the Asia-Pacific region generally gained.

Xero resumed its climb after two US funds gave the company equity capital and Chorus clawed back from its regulator-induced plunge.

The NZX 50 Index rose 16.11 points, or 0.4 per cent, to 4023.36. Within the index, 23 stocks rose, 14 fell and 13 were unchanged. Turnover was $131 million.

Xero rose 5.6 per cent to $7.60, edging back to the record high $7.75 reached on Monday, having raised $60 million selling shares to Peter Thiel-backed Valar Ventures and Matrix Capital. That's enough funds for three years at the current burn rate.

Chorus rose 2.2 per cent to $2.85, its second daily gain after a two-day, 18.5 per cent slump after the Commerce Commission released a draft determination the company said could slash annual pretax earnings as much as $160 million.

OceanaGold fell 1.9 per cent to $3.53, extending Wednesday's 12.2 per cent slump after the company unexpectedly raised $C93.3 million selling 30 million shares for $C3.11 apiece in Canada.

Fletcher Building rose 1.5 per cent to $7.97. The Reserve Bank kept its official cash rate at a record low 2.5 per cent, helping anchor mortgage rates and allowing the housing market top continue its revival.

Telecom rose 0.2 per cent to $2.275.

Postie Plus Group rose 5 per cent to 21 cents after announcing it has again avoided a breach of its banking covenants and gained a 12-month extension on its facilities.

BNZ completed its annual review of the banking facilities," the Christchurch-based company said in a statement.

Pumpkin Patch rose 4 per cent to $1.30 and carpet maker Cavalier rose 3 per cent to $1.71. NZX, the stock market operator, rose 1.7 per cent to $1.23 after holding an investor open day.