NZ stocks: Dividend payouts push market up

6.40pm


New Zealand shares traded strongly today, but the performance was hidden by a number of stocks going ex-dividend.

The sharemarket got no leads from a post-Thanksgiving US market, but the NZSX-50 surged 23.309 points, nearly one per cent, to close at 2369.146 on turnover worth $84.7 million.

In contrast, the former benchmark index, the NZSX-40, closed down 19.213 points or 0.86 per cent to 2214.947.

Richard Burton, a broker with Forsyth Barr Frater Williams, said the market was quiet following the offshore markets, but was lent support by the likes of Telecom, Fisher & Paykel Healthcare and Cavalier going "ex-div".

"That's hiding some quite good support performances -- Infratil, Lion, Sky City, Telecom covering its dividend, INL -- there's some pretty good solid movers."

The exchange's stock also rose 10c to 540 -- "an absolute stunner," according to one broker. Last week the exchange said it was bidding to run the electricity market.

Index cornerstone Telecom closed 2c up at 522 after paying out a 5c per share dividend, topping turnover at $42.3 million.

Other leading stocks to do well included a recovering Auckland Airport, up 3c to 667; Carter Holt Harvey, up 3c to 180; and Contact Energy up 7c to 551.

Energy stock NGC Holdings was the star performer, rising 23c or 13 per cent to 199 after cancelling three out of every seven shares on issue and making a $525 million capital return.

A utilities analyst said NGC shares were trading 9.5 cents or 5 per cent higher than their theoretical post capital return value of $1.895 each.

Utilities investor Infratil also climbed 9c to 270, and an "underpriced" Waste Management was up 3c to 389, as investors sought out defensive stocks, Mr Burton said.

"I think people are focusing on safe stocks -- you've got Contact up, (Auckland) Airport up, Telecom more or less holding its divvy... Waste Management up and you've got recovery stocks like Tower -- they had a recent selloff and it's bounced..."

Sky City unveiled plans for its Adelaide casino, sending the share price up 8c to 464.

Losers on the day included Fletcher Building down 5c to 398, on concerns about rising interest rates and falling building consent rates on $4.1 million worth of shares.

The Warehouse fell 10c to 520 as the fallout continued over disappointing news about the progress of its Australian operations.

Communications company GDC was severely punished after news that it had lost $40 million worth of Telecom contracts. It plummeted 44c to 30c and at one stage touching a all-time low of 29c.

The twin Fisher & Paykel companies also came off the boil after paying dividends: Healthcare, which went paid 24cps, was down 25c at 1190 and Appliances, which paid 7cps, fell 3c to 375.

Ports of Auckland fell 15c to 800, in contrast with Port of Tauranga, up 4c to 415.

"I think the Ports of Auckland got pushed a bit hard on Friday," Mr Burton said. "Remember, a week ago it went to 780 and bounced back up."

Other movers included Tower up 3c to 129, Cavalier down 2c to 553 and Independent Newspapers Ltd up 7c to 510.

Falls outnumbered rises 53 to 43 on 145 stocks traded.

Overseas, the Nasdaq Composite Index was up 6.95 points at 1960.26, the Dow Jones was up 2.89 points at 9782.46, while the Standard & Poor's 500 Index was down 0.25 of a point at 1058.20.

- NZPA