NZ stocks: Fletcher Building stars on sleepy market

12.00pm

A jump in Fletcher Building shares led the sharemarket up this morning, but on extremely thin turnover.

The NZSE-40 capital index was up 6.45 points just after 11am, raising it to 2130.40 on turnover of $8.3 million.

Fletcher Building jumped 8c to 285, easing a cent from its initial spike, after announcing a positive updated earnings forecast. The stock topped the turnover on 715,000 shares worth $2 million.

The company said that as a result of favourable trading conditions and an improved performance in most operations, it would report a full year earnings before interest and tax (ebit) and unusual items of around $200 million, bettering most market forecasts.

Market leader Telecom was up a cent at 530 on $1 million worth of shares. Nevertheless, brokers noted there had been rejuventated interest in the stock . Ongoing negative rumours about an AAPT writedown and possible Verizon selldown appeared to be "priced in," according to one broker.

Air New Zealand was "very quiet," up 2c to 61, and its progress today would depend on how Australia viewed the stock.

BIL International was also expected to provide some interest. Down a cent to 62, the stock rallied in Singapore yesterday on the back of renewed divestment rumours.

There BIL, formerly Brierley's, saw its shares rise 6.86 per cent to S54.5c (63.29c) on turnover of 6.9 million shares.

Last month, rumours that BIL was trying to sell its 10 per cent stake in food group Fraser & Neave propelled the stock sharply higher but BIL eventually said it had not sold its F&N stake.

Rural services firm Wrightson was up 3c to 105 in spite of a news story that its stock price had fallen 19 per cent since February as commodity prices weaken. The fall was "unwarranted," said one broker.

Retailer the Warehouse gained 5c to 770 and its smaller rival Briscoe was up 3c to 229 after April retail sales yesterday turned out to be double market expectations.

So far there have been 15 rises and 17 falls on 73 stocks traded.

On Wall St, US markets took a dip overnight as news emerged of an arrest of a potential bomber but blue-chips bounced back on upbeat news from retailer Wal-Mart.

The Dow Jones industrial average rose 55.73 points, or 0.58 per cent, to 9,645.40, and the broader Standard & Poor's 500 Index rose 3.21 points, or 0.31 per cent, to 1,030.74, according to the latest data. The technology-laced Nasdaq Composite Index however, fell points, or 0.31 per cent, to 1,530.69.

"Markets in the US are pretty fragile but our market on a global scale is pretty resilient," Sam McDonald of DF Mainland said.

"Two years ago we'd follow the Dow and Nasdaq, we've kind of broken off on our own tangent and that's where our opportunity lies."

- NZPA