NZ stocks: INL talks help boost market

6.00pm

Independent Newspaper's surprise announcement it was in talks to sell its publishing division helped boost the sharemarket today.

The benchmark NZ50 gross index rose 12.53 points, or 0.64 per cent, to 1959.83, while the top-40 index was up 0.82 per cent at 1933.52.

Turnover was healthy at 28.20 million stocks, valued at $90.33 million, topped by Telecom's $42.58 million.

Andrew Kelleher of ASB Securities said the market ended the week on a positive note, helped by a 7.3 per cent rise in Sky TV, INL's 66 per cent owned pay-TV asset.

Sky closed up 27c at 395, after reaching a nine-month high of 400 during the day.

INL, controlled 45 per cent by Rupert Murdoch's News Corp, is in talks with John Fairfax Holdings on the sale of its New Zealand publishing operations.

Shares in the publisher of the Dominion Post and Christchurch Press, among other New Zealand newspapers, were suspended until Tuesday pending a further statement, having last traded yesterday at $3.38.

"I think it was a surprise to the market, and we're still not quite sure what the actual result is, or what the motive is," Mr Kelleher said.

"We don't know if they're then going to look at taking out the whole of Sky -- that seems logical but we've definitely got differing opinions here. I would have thought INL shares would be higher (on Tuesday), closer to 400."

Telecom, which has shares in INL and Sky, closed up 5c at 462.

"Telecom's got a foot in INL and in Sky. Speculation will be rife all weekend as to what might come out of it next week."

Fisher & Paykel Healthcare rose 20c to 1030. "That's been quite volatile recently, although the net (positive) trend is still continuing having climbed from the low 900."

F&P Appliances also rose, to finish up 10c at a two-month high of 1045.

The Warehouse, which goes ex-dividend 10.5c on Monday, closed down 7c at 539.

"It's still struggling a little bit. It's nothing new, it's just people worrying about low levels of growth in New Zealand, and with talk of the Australian economy slowing there are question marks over getting the growth in Australia that they want," Mr Kelleher said.

Tranz Rail was down a further 4c to close at a fresh low of 71, although traded as low as 70 during the day. The company has slumped from the already unimpressive level of 94 last Friday after warning it would not meet revenue targets and had dismissed ratings agency Standard & Poor's.

Elsewhere on the market, Contact Energy rose 7c to 464, just below its record high reached on February 18.

Air New Zealand was unchanged at 45 after its proposed alliance with Qantas received a firm no from competition watchdogs yesterday. AMP rose 11c to 806, Baycorp Advantage was up 3c at 157, Fletcher Building rose 2c to 323, Carter Holt Harvey was up 1c at 162, and Briscoe Group rose 4c to 192.

Casino company Sky City fell 5c to 800, Pacific Retail was down 11c at 191, and Tower fell 2c to 208.

Westpac was up 28c at 1640, Trustpower was up 15c at 65, and Wilson Kettle gained 10c to 395.

There were 51 rises and 36 falls on the 131 stocks traded.

"A good close to the week -- now we just have to see what the score is in the war on Monday, as to how we start next week," Mr Kelleher said.

On Wall St, the blue-chip Dow Jones industrial average rose 0.29 per cent, to 8221.33; the Nasdaq Composite Index rose 0.65 per cent to 1365.61; and the broad Standard & Poor's 500 added 0.65 per cent to 871.58.

- NZPA