NZ shares snap five-day slide

NEW Zealand shares have advanced after a five-day slide gave investors confidence to buy companies offering dependable returns, including some in the property sector.

The NZX 50 Index rose 20.267 points, or 0.4 per cent, to 5128.840 on Thursday.

Within the index, 28 shares rose, 13 fell and nine were unchanged. Turnover was $143 million.

Volatility in US markets in recent months, particularly in high growth and tech stocks where investors have questioned high valuations relative to earnings, has led to greater risk aversion in equity markets, said Grant Williamson, director at Hamilton Hindin Greene.

"That has caused some investors to re-think things and put a higher portion of their funds in more conservative assets."

Gains included Argosy Property up 1.1 per cent to 96.5 cents, Precinct Properties one per cent to $1.055, Goodman Property Trust 0.5 per cent to $1.05 and Kiwi Income Trust 0.4 per cent to $1.165.

"We have seen investors take a little bit more of a conservative stance in the last couple of weeks and we are now starting to see the property trusts come back into focus, they had been underperforming for a number of months," Mr Williamson said.

"But most of them have reported pretty good results in recent days."

Steel & Tube Holdings led the index higher, up 4.1 per cent to $3.08. Air New Zealand rose 1.6 per cent to $2.17, while Fletcher Building advanced 1.4 per cent to $9.17.

Chorus fell 2.3 per cent to $1.71 after the Commerce Commission extended the deadline for its final decision on the telecommunications network operator's copper pricing.

"The share price was just starting to gain some traction from presentations that the company was making but that was all shot down following this morning's announcement that there is going to be a longer time for the determination," Mr Williamson said.

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