NZ stocks: Shares test fresh high

The top 50 share index continued to test new highs on light volume this morning, led by strength in market heavyweight Telecom.

The benchmark NZSX-50 index was 19.59 points higher at 3404.29 by midday, a fresh all time high, while the longer standing NZSX all capital index was up 6.80 points at 1065.35.

Leading the rise this morning was top stock Telecom, which added 9c to 636 ahead of a big dividend payout later this week.

Market number two Contact Energy was a cent higher at 744, despite pronouncements from weather forecasters that winter is over without having really arrived.

Auckland International Airport rose 5c to 234, Waste Management added 10c to 660, Fletcher Building rose 3c to 782 and Fisher and Paykel Healthcare rose 5c to 595 ahead of its annual meeting today.

Goldman Sachs JB Were senior investment advisor Murray Rutherford said today's rally reflected general confidence in the market, with most investors reluctant sellers at this point.

"We had a very positive day yesterday. A lot of people are happy with their holdings and are reluctant to be selling at current levels."

Sky City, which had a roller coaster ride yesterday after posting a 4 per cent rise in year net profit of $104 million, was a 2c higher at 479.

Steel & Tube, which last week put out an upbeat report about the commercial construction market, added a further 2c to 500 after gaining 8c yesterday.

Toll NZ was unchanged on 340 after reporting a $41.4m net profit yesterday -- a rebound from a $335.6m loss last year.

On the flipside, Fisher and Paykel Appliances lost another cent to 358, adding to yesterday's 8c fall after it told shareholders at its annual meeting that while US operations were going well, Australia and New Zealand markets were challenging.

Cavalier Corp fell another 9c to 380 following its poor result on Friday.

Jeweller Michael Hill plunged 24c to 710 as investors continued to take profits after a good result last week.

Takeover target Carter Holt Harvey slipped a cent to 260.

Rises outnumbered falls by 38 to 29 among the 120 stocks traded. Turnover was slim, with 11 million shares worth $46 million changing hands.

- NZPA