NZ stocks: Fletcher Forests at four-month high

12.00pm

The New Zealand sharemarket was in positive territory again today with Fletcher Challenge Forests (FCF) at a four-month high.

By late morning the NZSX-50 gross index was up 28.26 points, or 1.32 per cent, at 2168.77, on turnover of 12.63 million stocks valued at $30.37 million.

James Lindsay of New Zealand Guardian Trust said the New Zealand market had been reasonably resilient, holding ground yesterday in the face of a sell-off in international markets.

"It's less risky on an international perspective as far as the economy and earnings go," Mr Lindsay said.

"To a great extent the New Zealand market changes on international order flow, so the movement yesterday was driven by some buy-side orders from offshore."

After announcing yesterday it wanted to put its entire 100,000ha plantation estate on the block, FCF was up 5c at 115 and its preference shares were up 5c at 114.

Major FCF shareholder Rubicon was down 1c at 72, while fellow forest sector stock Carter Holt Harvey gained 2c to 174.

FCF's decision to sell its forests could push the stock into the 125/150 range in the medium term, if successful.

Some analysts had already valued the stock in the same range prior to yesterday's announcement, but the company was now more likely to achieve that value, he said.

"Nothing's changed ... the trees haven't gone up in value, but what the market is saying is that the probability of being able to realise that is much higher now. There's always been a gap between the sharemarket value and what people believe the forests are worth."

Market leader Telecom gained 10c to 520 on the back of upward moves offshore, AMP was up 12c at 605, Auckland International Airport rose 7c to 590, Fisher & Paykel Healthcare was up 25c at 1150 and F&P Appliances rose 40c to a fresh high of 1315 on light volume.

Discounter The Warehouse was up 15c at 485, Fletcher Building gained 5c to 362, Contact Energy was up 3c at 488, Lion Nathan was up 15c at 665, Sky TV rose 2c to 457, and newly-listed NZX was up 3c at 410.

Rail operator Tranz Rail was unchanged at 90 despite its downgraded profit forecast yesterday, and Independent Newspapers Ltd was up 1c at 430 after an independent report called Fairfax Holding's $1.2 billion offer fair.

There were 66 rises and 10 falls on the 109 stocks traded.

On Wall St, the Dow Jones industrial average rose 199.6 points, or 2.19 per cent, to 9316.72; the S&P 500 gained 22.15 points, or 2.24 per cent, to 1010.76, near a 12-month high; and the Nasdaq Composite Index climbed 40.83 points, or 2.51 per cent, to 1667.32.

- NZPA