NZ stocks: Investors shrug off Telecom's surprise

The share market consolidated yesterday, finding solid support after a 2 per cent fall the previous day, sparked by a placement of 91 million discounted Telecom shares.

The NZSE-40 capital index closed up 3.7 points at 2049 on moderate turnover of $90 million.

"There's been a bit of a rebound in some of the leaders," said one broker.

"Looking across the board, you've got stocks which were sold down yesterday as people were raising cash to pay for the Telecom placement rebounding."

Brokers said the Budget had had little impact on the market.

Most of its numbers had been well-telegraphed, so it created no obvious winners or losers on the market.



Telecom stock remained under some pressure as it dropped a further two cents to close at $5.59

Turnover in its shares was worth $48.6 million.

Among leading issues, Auckland International Airport was up three cents to a $3.60 close, and brewer Lion Nathan was two cents up at $4.80.

Discount retailer The Warehouse gained seven cents to $5.57 after announcing that it will be forming a joint venture with WestpacTrust to sell some financial services.

Forestry and biotechnology company Rubicon hit a fresh high of $0.60, gaining three cents after an announcement that oil firm Caltex New Zealand had sought regulatory approval on Wednesday to acquire its petrol unit, Challenge Petroleum Ltd.

- NZPA