NZ stocks: Fletcher Building powers up sharemarket

12.00pm

A surge in Fletcher Building laid the foundation for a rise in the benchmark sharemarket index this morning.

Fletcher Building raced up 30c, or 6.22 per cent, to 512 this morning, its highest since December 1997. The company this morning announced a full-year net profit after tax, of $240 million, up 43 per cent on last year's $168 million.

The company also announced a fully imputed final dividend of 14 cents per share.

Amro Craigs Equities retail adviser Bryon Burke said the result was well above the average market forecast. "It was a very good profit there and it's attracted a lot of new buying interest," Mr Burke said.

Fletcher Building's rise helped push the benchmark NZSX-50 gross index up 15.92 points, to 2770.97, while the NZSX-All capital index rose 5.69 points to 932.95 by 11.35am.

Telecom also started the day strongly, rising 3c to 609 on turnover worth $4.4 million, out of total market turnover worth $29.7 million.

The overall trading tone was positive with rises outnumbering falls 38 to 18 among the 111 stocks traded.

Stock exchange operator NZX was up 1c at 830, after yesterday announcing it would offer two new passive investment funds by the end of the year, one tracking the ASX50-100 and one following the NZSX-50 Portfolio Index.

Other stocks on the move by 11.35am included Auckland International Airport up 3c at 700, Fisher & Paykel Appliances up 5c at 467, F&P Healthcare up 8c at 1340, Metlifecare up 5c at 250, Ports of Auckland up 10c at 715, Contact Energy up 3c at 598, Hallenstein Glassons down 6c at 322 and Provenco up 1c at 67.

- NZPA