NZ stocks: Fletcher group makes all-round gains

The Fletcher group led the sharemarket higher yesterday on good turnover.

Market leaders Telecom and Carter Holt Harvey did nothing to boost the index with Telecom closing 2c down at 748 and CHH flat on 186.

The NZSE-40 Capital Index closed up 8.76 points at 2158.24. Turnover totalled $110.9 million.

Cavill White Securities broker Allan Wills said continued strength in Fletcher Energy, up another 10c to 790, was due to expectation that a bid for the company is still regarded as a strong possibility.

The other two companies in the group also made slight gains on positive expectations of the conglomerate being split up by the end of the year. Fletcher Building gained 4c to 228 and Fletcher Forests closed up 1c at 86.

Contact Energy closed 2c up at 263. The announcement of an acting chief executive from 40 per cent shareholder Edison Mission was greeted positively.

"I think the market will generally be a bit hesitant about that stock until something is absolutely finalised. That stock has been under pressure since Paul Anthony notified his resignation," said Mr Wills.

Advantage Group rose 3c to 300 following its earnings result on Wednesday and brokers said there was good interest in that stock with quite healthy turnover of 760,000 shares.

Media stocks had a good day. Sky TV rose 7c to 419, while its half- owner INL jumped 16c to 445. Wilson & Horton exchangeables closed 12c stronger at 1090.

Air New Zealand had a mixed day with the B shares closing 7c down at 243 and the A shares rose 1c to 185.

Mr Wills said there were several initiatives in the wind with Air NZ, particularly news of its equity raising to help fund its acquisition of Ansett Australia.

Air NZ confirmed it expects integration benefits of $A200 million ($259 million) over one to three years.

Sky City, which is expected to report a record profit on Wednesday, rose 5c to 730.

- NZPA