NZ stocks: Bargain hunters push Telecom higher

The New Zealand sharemarket rose yesterday as bargain hunters set their sights on Telecom.

Apart from some off-market work in Lion Nathan and Fletcher Energy the market lapsed back into holiday mode, despite a flurry of activity in the United States after the Federal Reserve's surprise interest rate cut.

The NZSE-40 capital index rose 15.57 points to 1915.10, and smaller stocks also rallied, the NZSE-SCI capital index closing 34.93 points up at 5118.89.

Total turnover of 28.44 million shares was worth $120.88 million, but much of that trade was done pre-market.

Prominent among those deals were Lion Nathan, with probably exaggerated trade, on the face of it, worth $49.14 million. It dropped 8c to $5.00, the level of the off-market deals.

Cavill White Securities managing director Don Turkington said he was not aware of any particular reason for the apparently large volume.

"The volumes are good for this time of year," Dr Turkington said, noting it happened on an up-day and with the market closing just half a dozen points off its highs.

Rising stocks outnumbered falls 61 to 28.

Hamilton, Hindin, Greene's Grant Williamson said Telecom, which continues to hover around six-year lows, had been oversold, but selling appeared to be drying up. The stock finished up 13c at $4.90.

Casino operator Sky City struck recent highs, gaining 13c to $8.29. It recently won court action clearing the way for its proposed Hamilton casino.

Carter Holt Harvey rose 4c to $1.67 following American parent International Paper's gains overnight.

Among the losers, AMP lost 35c to $24.85. After a good run higher, the stock weakened yesterday in Australian trading.

Fletcher Energy fell 5c to $8.21 as the New Zealand dollar rose against the American greenback.

Air NZ A shares were unchanged at $1.58 and the Bs, which foreigners can own, were up 4c to $2.32.

Axa Asia rose 5c to $3.80, Guinness Peat was up 3c to 146, Telstra rose 14c to $8.41, Tranz Rail was up 13c to $3.69, and Auckland Airport added 2c to $3.15.

- NZPA