NZ stocks: Leading stocks help beat offshore blues

The sharemarket shook off overseas malaise to close in positive territory, with the market's leading stocks showing the way.

At 5pm the NZSX-50 index was up 9.817 points at 2333.63, a mere 0.42 per cent but it outperformed most of its "sloppy" overseas counterparts, ABN Amro Craigs' retail equities adviser Nigel Scott said.

"Our market's done very well today to close up nine points -- (it's) probably the best performing market around."

Just over 30 million shares worth $77.6 million changed hands on the exchange and 141 stocks traded, with 30 rises and 69 falls. The former benchmark NZSX-40 capital index closed up 2.442 points higher at 2218.62.

The biggest news came late in the afternoon from number two stock Carter Holt Harvey, which confirmed reports yesterday that it was reviewing its tissue business including a possible sale. Shares in CHH closed up 6c or 3.3 per cent at 187.

Contact Energy, which touched an all-time high yesterday of 530 yesterday, climbed another 11c to 534 as speculation continued to swirl that Edison Mission Energy was considering selling its 51 per cent stake in the company.

"Clearly the market is of the view that someone may come along and buy the whole thing rather than place it out," said Mr Scott.

The rise also followed a good result. Contact confirmed a September year profit of $118.3 million on Friday, up 11 per cent on last year.

Bellwether stock Telecom rose 5c to 504 on turnover worth $26 million, which brokers attributed to greater confidence in the major stocks.

"People have moved into the leaders and they've continued to sell off some of the secondary stories," Mr Scott said.

Other rises include Auckland Airport up 4c to 684 ahead of its AGM on Wednesday; Fisher & Paykel Appliances up 4c to 376 after a share split yesterday; and Sky City Casino up 4c to 473, also following a share split.



Mainfreight gained a cent to 139 after announcing a 46 per cent lift in September half year net earnings to $3.67 million. Brokers said investors were anticipated a cash issue.

Wakefield Hospital jumped 10c to 195 after reporting a 81 per cent increase in half year profit to $846,000.

On the downside, Fletcher Building and Nuplex were thought to have been affected by concerns of lower potential profits. Fletcher Building fell 4c to 404 and Nuplex eased 6c to 399, both on low turnover.

Retail giant The Warehouse slipped 5c to 575 after dipping 11c earlier in the day. Brokers put the dip down to profit-taking or concerns that the company may not enjoy the Christmas it expected.

Fast food franchise company Restaurant Brand slid 6c to 120 after releasing a revised profit forecast. The company warned its second half result would be hit by a sales slump in its fried chicken chain KFC, although it expected profitability to be in line with the same period a year ago.

Mr Scott said the stock had been dogged by strong competition and the fact it was without a permanent chief executive. He was surprised the company was maintaining a dividend.

In the US yesterday, stocks fell as fears over more deadly attacks across the world and a gloomy outlook for retailers added to investor concerns that the market had run too far, too fast.

The blue-chip Dow Jones industrial average fell 61.48 points, or 0.63 per cent, to 9707.20. The broader Standard & Poor's 500 Index lost 7.03 points, or 0.67 per cent, to 1043.32 and the Nasdaq Composite Index fell 20.93 points, or 1.08 per cent, to 1909.33.

- NZPA