NZ stocks: Telecom rises after result, sharemarket up

Market heavyweight Telecom gained ground this morning following the release of its second quarter result, sending the broader sharemarket higher.

The telco gained 6c to 622 after reporting a second quarter profit of $198 million -- lower than the same time last year, but higher than analysts' forecasts.

For the six months ended December, Telecom reported a net profit of $391 million, up from $365m.

A 9.5 cents per share fully imputed dividend for the quarter will be paid.

By 11.35am today turnover in Telecom shares of $24.6 million made up the bulk of total market turnover of $41.6 million.

Telecom's rise set the tone for the wider market and by 11.35am today the benchmark NZSX-50 gross index had risen 7.12 points to 3104.44. The NZSX-All capital index was up 2.75 points to 1018.45.

Of the 126 stocks traded in the time, there were 51 rises and 35 falls.

Among stocks on the rise was takeover target NGC, which rose 6c to 316 -- well above the $2.91 price on offer by would-be buyer Vector. Vector's offer for the gas pipeline company closes today.

Meanwhile Briscoe gained 2c to 120. The discount retailer yesterday said it expected its net profit for the financial year to be higher than its previous estimate of $17.5 million.

Fletcher Building rose 4c to 662. Yesterday the Australian Competition and Consumer Commission (ACCC) approved Fletcher Building's takeover bid for Australian insulation firm Insulation Solutions.

Fisher & Paykel Appliances softened a further 1c to 344, after shedding 54c in the previous two sessions after issuing a profit warning on Wednesday.

Other stocks on the move by 11.35am today included: Contact Energy up 3c at 660, Carter Holt Harvey down 2c at 213, Pumpkin Patch down 4c at 306, and The Warehouse up 2c at 396.

- NZPA