NZ stocks: Larger mid-cap stocks stage late rally

The sharemarket closed slightly up yesterday in subdued trading with mid-capped stocks rallying at the finish.

The NZSE-40 capital index closed up 4.01 points to 2003.08 on light turnover of 19.43 million shares, worth $66.98 million.

The NZSE-SCI capital index of smaller shares finished flat, up just 0.94 points to 5245.61.

Nigel Scott, head of institutional sales at ABN Amro, said the market had been marking time over the past two weeks but he expected it to pick up next week. "We're coming to the end of the Olympics and Australia's got a holiday on Monday so the marketplace will start to look at itself early next week.

"The larger mid-capped stocks seemed to be having a bit of a rally," Mr Scott said. Baycorp was up 39 at $11.69, The Warehouse gained 14c to 599 and Sky TV closed up 12c to 340. All three stocks had recently been trading down in light volume, Mr Scott said.

Among the leaders, Telecom closed up 2c to 614 on turnover of 3.3 million shares, at one point hitting 620.

But Mr Scott said there was still evidence of sellers around.

"The marketplace is still trying to do a bit of work in the stock at this point, just like it is in Australia in Telstra."

Fletcher shares had a mixed day, with the closely watched Energy division shedding 13c to 880 as people wearied of waiting for an ownership deal to be sealed. Building closed up 4c to 247 and Forest was unchanged at 80.

Contact Energy softened 6c to 263 after announcing it was investing up to $668,000 in a feasibility study for construction of a new co-generation plant in southeast Queensland.

Air New Zealand B shares closed up 7c to 275 with people showing more positive sentiment in the stock. Air NZ A shares added 3c to 183.

Genesis closed up 20c to 700 but at one stage reached 730.

Other rises were Tranz Rail, up 5c to 370, and Tower, also up 5c to 505.

Those that fell included Metlifecare, down 14c to 106, and Michael Hill down 18c to close at 300.

- NZPA