NZ Stocks: Big buy orders drive stocks up 1.5pc

A couple of big across-the-board buy orders shunted the top-40 index 1.5 per cent higher as the sharemarket finished an otherwise negative week on a positive note.

However, Air NZ, still being punished for the company's comments at the annual meeting on Wednesday about oil and currency related costs cutting into profits, was down again.

The NZSE-40 capital index ended up 29.15 points at 1942.47. Once again smaller stocks made ground. Rises outnumbered falls 65 to 31.

"It was an interesting day, just driven by order flow and a little bit more confidence around Telecom," ABN Amro's Nigel Scott said.

America's tech-rich Nasdaq composite index rose 2.87 per cent, a positive for Telecom.

Air NZ domestic A shares eased a cent to 147, but the Bs, which foreigners can own, lost 11c to 185.

"Clearly people are making a decision on whether they do take up their rights or let them lapse. It will be interesting to see whether they will take up as many as they would have 48 hours ago," Mr Scott said.

Deutsche Securities dealer Shane Gavegan said: "Investors aren't very happy with Air New Zealand announcing those sorts of downgrades after the rights issue."

Contact Energy broke its recent losing streak, jumping 20c to 295. "The rumour mill just does not seem to go away with Contact," Mr Scott said. With the currency so low, it is speculated that cornerstone shareholder Edison Mission will buy more stock.

Mr Scott also noted that option-related plays in the stock could push it around markedly given its relative illiquidity.

Natural Gas rose 5c to 145, probably following counterpart Contact.

Fisher and Paykel was up 5c at 730, ahead of its result.

Sky TV jumped 20c to 310.

Fletcher Forests rose 3c to 35. "There's a bit of buying there, a bit more confidence - I don't share that confidence," Mr Scott said. "I think there is a lot of water to go under the bridge yet."

Lion Nathan rose 5c to 500, a heavy seller having completed its business.

Tranz Rail added 5c to 370, Advantage was up 7c at 175, Auckland Airport rose 6c to 296, Sky City put on 13c to 730 and Fletcher Energy gained 13c to 853. Frucor was up 10c at 195 after its annual meeting on Thursday.

- NZPA