NZ stocks: Air NZ continues to star on lacklustre market

12.00pm

Air New Zealand continued to star today in an otherwise lacklustre sharemarket.

The airline jumped 13 per cent yesterday and was up another 2c to 45c today giving it an 18.4 per cent gain since Friday's close. It said today it expected to break even in the June year following a significant improvement in tourist traffic.

Just after 11am the NZSE-40 capital index was down 4.35 points to 2045.58 on light volume of $19.2 million.

Air NZ soared yesterday after broker UBS Warburg said it could be worth 62c per share if it successfully transformed into a discount airline.

Andrew Kelleher of ASB Securities said today's statement on improved profitability added to the positive tone the stock was developing.

"It's a stock the retail market has an affinity for.

"I think you still need to be cautious on the stock. It's still got to prove itself even though we have had these positive announcements. It's still in a sector that is recovering from an ugly year," he said.

The NZSE said the final adjustment on the reweighting of Air NZ in the NZSE-40 following the airline's recapitalisation by the Government would be made on May 1.

The market leaders were little changed and mixed.

Telecom topped the turnover at $4.1 million and was down 1c at 485.

Among the stocks to fall were Auckland Airport, 2c to 433, Fletcher Building, 2c to 283, Fisher and Paykel Healthcare, 5c to 935, AMP, 1c to 2195, Carter Holt, 4c to 179, Tower, 3c to 490, Tranz Rail 6c to 372 and Westpac NZ, 20c to 1865.

Rising stocks included: Powerco, 1c to 188, Natural Gas, 3c to 108, Fisher and Paykel, 2c to 965.

Rarely traded McConnell was down 22c to 172 on a small trade of just 944 shares.

There were 48 stocks to fall and 17 rises among the 107 stocks traded.

- NZPA