NZ shares rise led by NZ Oil & Gas

NZ Oil and Gas led the NZX share index up, while a number of stocks with dual Australia-New Zealand listings also rose.

New Zealand shares have risen, led by New Zealand Oil and Gas after it bought a cornerstone stake in ASX-listed Cue Energy.

Fletcher Building and Sky Network Television also advanced as dual-listed stocks followed the Australian bourse higher, though Kathmandu tumbled after it flagged poor sales across the Tasman, its largest market.

The NZX 50 Index gained 13.989 points, or 0.3 per cent, to 5541.739. Within the index, 22 stocks rose, 18 fell and 10 were unchanged. Turnover was a smaller than usual $86.2 million.

New Zealand Oil & Gas climbed 4.2 per cent to 62.5 cents after the listed exploration company acquired 19.99 per cent of ASX-listed Cue Energy for $A13.96 million from Todd Petroleum Mining, gaining exposure to the Maari field.

"I'm sure it was the little stake in the Maari field that NZO thought was looking cheap," said Matthew Goodson, managing director at Salt Funds Management.

"They've generated an enormous amount of cash out of Tui, and that will continue to operate for many years to come but it's firmly in decline mode now."

Across the Tasman Australia's S&P/ASX200 Index surged 1.5 per cent in afternoon trading, extending last week's gains after economic growth figures for the September quarter were the lowest in three-and-a-half years.

Many dual-listed stocks gained, including Fletcher Building, Sky TV, Auckland International Airport, ANZ Bank and Westpac.

"There's a relief rally surge in Australia," Mr Goodson said. "We're starting to see from several of the Australian economists views that the RBA will need to cut rates next year given the weakness of their domestic economy."

Kathmandu was the worst performer on the day sliding 21 per cent to near a two-year low of $2.20 after the outdoor equipment retailer reported a slowdown in sales growth after a subdued start to Christmas shopping in its Australian market.


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