Telecom rise turns NZ market around

File photo

A 5 cent rise in the price of Telecom helped turn the New Zealand sharemarket around today after it fell in early trading.

The benchmark NZX-50 index closed up 6.138 points, or 0.188 per cent, at 3270.383 after opening down 5.94 points after the US market eased in its Friday session.

Telecom closed on a session high of 221 today, up 5c, or 2.31 per cent, on good volume. Investors continue to wait for announcements on the Government's broadband plans.

Another market heavyweight Fletcher Building was down 9c at 795, while Contact Energy was unchanged at 593.

Pike River Coal shares remained suspended but the company updated the market today with information that had been released at press conferences. The shares of major shareholder NZOG were unchanged at 92.

"It has given up pretty much all the value that was in the share price for its investments in Pike and is valued at the level of their other projects," said Grant Williamson, director at Hamilton, Hindin, Greene.

He said the market was weak for most of the day.

Charlie's Group eased 0.8c to 18 after founders of the beverage company sold down part of their stakes at 18c to institutions and private investors. Charlie's has been a turn around story lately and it was good for them to get some institutions on board, Mr Williamson said.

Methven fell 5c to 158 after reporting its interim result. The company talked about difficult conditions but maintained its dividend.

The lights may have gone out on Auckland Airport's runway at the weekend but the share price rose a cent today to 209. Airways Corporation has fixed the cabling fault that saw runway lights fail.

Ebos rose 10c to 750, Fisher & Paykel Healthcare rose 3c to 293 and Ryman Healthcare was unchanged at 219.

ANZ rose 29c to 29.24 and Westpac rose 49c to 27.49.

Air NZ rose 4c to 138.

In the United States, last week ended with commodity-related shares leading stocks lower in a shortened post-holiday session as investors unloaded risky assets on worries that euro-zone debt problems may spread.

The Dow Jones industrial average dropped 0.9 per cent to end at 11,092, the Standard & Poor's 500 slipped 0.8 per cent to 1189.40, and the Nasdaq Composite lost 0.3 per cent to 2534.56.

- NZPA