NZ stocks: Leaders stage late rally

The sharemarket ended the day in positive territory after spending most of the session in the red.

Credit Suisse First Boston broker David Price said a portfolio buyer helped boost the market. The NZSE-40 capital index closed up 2.75 points at 2050.57.

Mr Price said the New Zealand market was the best performer in the March quarter and continued to hold up well.

The market had a poor steer from Wall Street where US stocks dropped on Friday after an explosive rally on Thursday.

Local volume of 52 million shares worth $192.4 million was boosted by the offmarket sale of 13 million UnitedNetworks shares worth $104.5 million.

Brokers welcomed the greater liquidity in the stock after Kansas-based Utilicorp said it had cut its stake in the gas, electricity and fibre-optic networks concern from 78.8 per cent to 70.2 per cent.

Utilicorp said it had placed the 13 million shares with a range of local and overseas investors at $8 a share, an 8 per cent discount to the prevailing price.

UnitedNetworks, led by chief executive Dan Warnock, finished down 30c at $8.40.

ABN Amro Craigs broker Nigel Scott said the market had been looking for a bigger placement to provide greater liquidity for the top 10 stock, but the move was still positive.

"It's a very good move for the market," he said.

"It doesn't replace Fletcher Energy, but it does provide another large stock in which the market didn't have liquidity before," Mr Scott said.

Telecom lost 2c to close at $5.83 on volume of $20.6 million.

Its performance contrasted with Telstra's 18c gain to 808.

The portfolio buying created good turnover in Fisher & Paykel, unchanged at $8.05, Air New Zealand B, down 2c to $1.48, Auckland Airport, up 5c to $3.60, Carter Holt Harvey, down 1c at $1.80 and Lion Nathan, down 6c at $5.18.

Apple Fields, which last week said it had turned its messy affairs around, rose 4c to 10c.



Fletcher Building lost 2c to $2.36 after shedding its 6c dividend. Mr Price said this was a good performance in light of the poor building and job statistics in Australia. Cavalier Corp rose 15c to $4.85 on light volume.

INL fell another 5c to $3.30 after losing ground on Friday following Craig Heatley's departure from the share register. Sister stock Sky TV rose 15c to $3.45.

Montana posted a healthy gain of 9c to $4.18.

Scott Technology fell 8c to $1.47 after reporting on Friday that tough overseas markets had affected its half year profit although it expects growth to pick up over the next six months.

The bottom line profit for the six months ended February 28 was $11,000, down from $1.55 million.

Tower continued its good run, rising 3c to $5.60 after announcing an alliance last week with the world's largest bank, Citicorp.

- NZPA