NZ stocks: Investors take heart from supportive data

12.00 pm

The sharemarket opened today with a more positive tone following yesterday's sharp sell-off triggered by a large portfolio seller.

The NZSE-40 index was up 8.54 points to 2029.52 at 11.30am on light volume of just under $22.2 million.

JB Were broker Murray Rutherford said the tone had been improved by housing data yesterday showing a big rise in home sales and a big lift in business confidence including a sharp rise in how businesses see their own trading.

He said the house sales data usually translated into a lift in residential construction and that pointed to an improvement in the domestic economy.

Market heavyweight Telecom recouped a third of yesterday's 12c loss to be trading at 490.

Yesterday's big loser Auckland Airport, gained 1c to 376 after it lost 14c yesterday on news that Singapore's Changi had dumped its 7.1 per cent stake ahead of the expected selldown by the Auckland City Council.

Another to partially recover was Carter Holt Harvey, one of the victims of the portfolio sell down. It was up 2c to 167 today.

Air New Zealand shares were firm ahead of today's annual meeting to approve the Government recapitalisation which will see shareholders's stake diluted by 5.5 times and the Government take up an 82 per cent holding. The A shares were steady on 34c and the Bs up 1c on 34. The class distinction will disappear if the recapitalisation package is approved as expected.

Fisher & Paykel Healthcare fell 10c to 1680 and Contact Energy fell 2c to 400 while Fletcher Building was up 3c at 288, Westpac NZ was up 21 to 1771 and Sky TV was up 20c at 400.

There were few other moves of note. Waste Management was up 10c at 289, Vending Technologies was up 8c to 205 and Tower was off 8c at 596.

There were 39 rises and 31 falls among the 115 stocks traded.

- NZPA