NZ stocks: Contact continues to lead market higher

The sharemarket edged to its fourth consecutive closing high today with listed power giant Contact continuing to provide impetus.

The benchmark NZSX-50 gross index closed 4.23 points higher at 3148.61 while the NZSX all capital index ended 1.17 points higher at 1031.34.

Number two stock by market capitalisation Contact Energy rose 8c to 681, its highest ever close as it continued to benefit from speculation about a potential capital return.

Some commentators believe the prospect of top New Zealand companies making returns to shareholders after a period of robust business is currently driving share prices. But UBS managing director Campbell Stuart said with the reporting season just getting started, "it's the really the statements going forward that are going to be more important".

Fletcher Building which like Contact hit fresh highs in recent sessions eased a cent today to close at 679.

The company had "come off the boil" after Australian building products company Boral reported a dip in first half profit, Mr Stuart said.

Fletcher Building, currently eyeing Australian group Amatek, was nevertheless expected to report "a very good" interim result later this week.

Elsewhere among top stocks, market leader Telecom eased 2c to 630 while Fisher & Paykel Appliances enjoyed a 9c bounce to 343 today. The stock has lost nearly 60c since issuing a profit warning last week.

Discount retailer The Warehouse continued to rise today, adding 3c to yesterday's 12c gain to close at 418.

"After a reasonably cautionary statement a couple of weeks ago they've continued to go really well," Mr Stuart said.

It was reported today The Warehouse is asking some of its suppliers for hefty discounts and also plans to half its number of suppliers.

Hamilton Hindin Greene broker Grant Williamson said the company was likely "looking at all parts of their business and ways to improve their profitability".

"Clearly the market likes that," he said.

Meanwhile, Tower was down 6c at 214 in its second day of trade without its Australian Wealth Management unit, wood processor Carter Holt Harvey was up 3c to 213, and carpet manufacturer Cavalier was up 18c to 440 on slim volume.

Fisher & Paykel Healthcare rose 4c to 337, Infratil rose 5c to 370, Mainfreight was up 10c to 250, Michael Hill was down 15c to 715 and Sky TV was up 4c to 624.

Total turnover was worth $116.89 million and there were 61 rises and 47 falls among 152 stocks traded.

- NZPA