NZ stocks: Carter Holt stars as market resumes January climb

The New Zealand sharemarket kicked over the traces of two days of losses to move ahead, led by wood processor Carter Holt Harvey which cantered to an 18-month high.

The benchmark NZSX-50 gross index finished today's session 9.8 points or 0.40 per cent higher at 2503.25, while the NZSX-40 capital index ended 8.76 points or 0.38 per cent higher at 2324.71. Turnover was $78.94 million. There were 68 rises and 41 falls among 150 stocks traded.

Carter Holt Harvey was "again the star of the show", Direct Broking's Brett Wilkinson told NZPA.

In its seventh consecutive positive session, the stock rose rose 5c to 214 -- its highest level since June 2002.

Mr Wilkinson said a large institution had bought a chunk of the stock early in the session at 215, "and that brought in other institutional buyers at a similar level".

Carter Holt Harvey has enjoyed strong buyer interest on prospects of a large capital return to share holders following the planned sale of its tissue business, and rumours that it is also considering selling off its forestry assets.

Mr Wilkinson said another feature of the day's trade was a number of highs in mid-cap stocks.

Retirement village developer and operator Metlifecare rose 15c to a fresh high of 245.

"It's been a long wait for Todd corporation to get back into the money on this stock," Mr Wilkinson said.

Todd Corporation bought a substantial stake in Metlifecare in 1999.

PowerCo rose 5c to a fresh all-time closing high of 209, Repco closed 7c higher at 312 and Dorchester Pacific closed 5c higher at 255.

Market kingpin Telecom added a cent to finish the day at 549 after losses over the previous two sessions. Amro Craigs Equities' operator Matt Willis said the telco was had consolidated its recent gains. "It's obviously been higher this week but at 549 it's still a solid gain for the year to date. That's probably helping set the tone of a pretty positive market".

Contact Energy was again one of the market's standouts, finishing 4c higher at 570. Prospects of higher electricity tariffs for consumers and the signals that majority shareholder US company Edison Mission may soon sell its stake have helped the stock higher. "They've made their intentions to sell their asset quite clear", Mr Wills said. "It's just a matter of how they go about it."

Overall, Mr Willis said the market had seen active trade this week "I think the volatility in the currency market is probably prompting a little more offshore activity than we might ordinarily expect."

Elsewhere, stocks to move included: Cavalier Corp up 5c to 540, Fisher and Paykel Appliances down a cent to 385, Fisher and Paykel Healthcare up 5c to 1225, Fletcher Building down 2c to 401, Freightways down 2c to 227, Hellaby Holdings up 4c to 510, Northport up 4c to 324, NZX up 6c to 616, Ports of Auckland down 3c to 785, Promina up 2c to 382, Tranz Rail down 2c to 152, and TrustPower down 7c to 685.

- NZPA