NZ stocks: Farmers bring back the feel-good factor

The sharemarket rode out softness in the two leading stocks - Telecom and Fletcher Energy - and brokers said there were hints of some end of month window dressing.

"I think there is a bit of interest in the kiwi stocks on thoughts that the kiwi dollar might have bottomed," said Salomon Smith Barney broker Mike Hare. "You are starting to get guys looking at New Zealand from a macro view. Clearly, the picture is turning around. The farmers are having a tremendous time, the exports are going to recover, imports are slowing, so the picture is looking quite good."

Fletcher Energy dominated turnover, making up $61.5 million of the total turnover of $148.6 million.

Energy fell 20c to $8.77 mainly because of renewed weakness in its US associate, Capstone Turbines. Capstone fell more than $US2 to just over $US21.

Goldman Sachs, said analyst Masroor Siddiqui, had raised his rating on Capstone, adding them to Goldman's US Recommended for Purchase List from a previous market outperformer rating.

Telecom dropped 5c to $5.74, which brokers said was a reasonable performance against other telecos around the world.

Telstra dropped 27c to $8.01.

Advantage shares rebounded 13c to $1.35 after taking a 25c tumble over the past couple of days on fears that its directors were selling down their holdings.

Baycorp, another to have been sold lately, rose 40c to $10.80. Auckland Airport rose 1c to $2.95.

Bendon rose 9c to $1.90. The company said that the outlook in Australia was under pressure.

Air New Zealand saw its A shares rise 3c to $1.43 and the unrestricted B shares, 5c to $1.90.

Fletcher Forests recovered 1c to 25c, exactly on the price rights holders have to pay to convert their rights.

Lion Nathan was up 5c to $5.35, DB up 9c to $3.85 and Montana up 6c to $3.71. Cavalier rose 14c to $4.75 and Sky City was up 7c to $7.62

- NZPA