NZ stocks: Buoyant market shrugs off disappointing CHH result

A disappointing result from Carter Holt Harvey was not enough to reign in the sharemarket today, with the benchmark index bounding up to another record high.

The benchmark NZSX-50 gross index rose 13.97 points to hit a fresh high of 2757.64, while the NZSX-All capital index rose 4.85 points to 926.99.

Carter Holt Harvey, which is the second largest stock on the sharemarket, fell 4c to 215. The company today posted a $496 million June half year net profit, of which $440 million was a gain on the sale of its tissue business.

ASB Securities' Stephen Wright said the underlying $56 million profit was "very disappointing."

The company also failed to update the market on the potential sale of its forestry assets, as many in the market had hoped.

But Carter Holt's fall was not enough to drag the market down, with other market leaders continuing to strengthen.

" There's just continuing support for our leaders, with good offshore buying and good overall buying really," Mr Wright said.

Bellwether stock Telecom continued its strong run to hit a fresh 40 month high today, up 5c at 613 on turnover worth $52.7 million.

The stock has risen 28c since Monday.

"When you see Telecom just rising each day, you know there's good overseas buying, or good overseas support," Mr Wright said.

Contact Energy ended the day up 12c at 600, after falling 6c yesterday on the back of the announcement of the sale of a 51.2 per cent stake in the company. Australia's Origin Energy bought the majority holding from US-based Edison Mission Energy at 567c per share. Mr Wright said Contact's price today was in line with the company's longer term fundamentals.

Retail stocks were also firm today, "We've had all these forecasts that things were going to slow down, etc, etc, but it hasn't happened and retailers seem to be making a good fist of life at the moment," Mr Wright said.

Briscoes was up 8c at 138, The Warehouse rose 13c to 432, Hallenstein Glasson rose 9c to 336, Kirkcaldie and Stains up 7c at 232 and Pumpkin Patch was up 6c at 160.

Of the 154 stocks traded today there were 58 rises and 46 falls. Total market turnover was worth $145.6 million.

Other stocks on the move today included: Oceana Gold up 10c at 92, Sky City Entertainment up 2c at 490, Sky Network Television up 4c at 513, TrustPower up 6c at 466, Michael Hill Jeweller up 7c at 605 and Fisher & Paykel Appliances up 13c at 485.

- NZPA