NZ stocks: Market boosted by Telecom rise

The New Zealand sharemarket benefited from a bounce in Telecom today, although retail giant The Warehouse was punished for a disappointing profit.

The benchmark NZSX-50 gross index rose 4.49 points, or 0.20 per cent, to a record closing high of 2223.37, while the top-40 index was up 0.17 per cent at a 13-month closing high of 2148.16.

Topping turnover of 32.67 million, valued at $99.52 million, was Telecom's $29.27 million.

Richard Burton of Forsyth Barr Frater Williams said Telecom's 8c rise to 514 boosted the New Zealand market, where the Japanese and Australian markets had been in negative territory.

The Warehouse was sold down 15c to 510 after reporting an 8 per cent fall in its annual profit to $75.4 million, largely because of its loss-making Australian operations.

The market took a dislike to the figures, which met expectations, because of the company's disappointing outlook in an increasingly competitive sector, Mr Burton said.

Fellow retailer Briscoe Group was unchanged at 174 after posting a 3 per cent increase in annual profit today to $9.86 million.

"The (Warehouse) stock is expensive for a company that's not growing its earnings, it's overpriced. People aren't going to hold a stock that's not going to perform for them.

"Briscoe said a lot of their profit was flat so there's a lot of competition for them -- it's a more competitive sector," Mr Burton said.

Auckland International Airports rose 3c to 638, Fletcher Building gained 3c to 413, Guinness Peat Group was up 2c at 167, Sky City rose 2c to 875 and Restaurant Brands was up 1c 132.

Air New Zealand fell 1c to 61, Contact Energy lost 3c to 478, Carter Holt Harvey fell 3c to 167, Sky TV was down 2c at 480, Independent Newspapers lost 5c to 436, Promina fell 8c to 330, Fisher & Paykel Healthcare was down 2c at 1208 and F&P Appliances shed 5c to 1445.

Pacific Retail was up a further 10c at 230 after news yesterday of its purchase of Britain's third-largest independent appliance retailer, the struggling company Powerhouse, for only $48 million.

Tranz Rail shareholders appeared ready to accept Toll Holdings' revised offer of 110, which comes with an extra fortnight to decide, pushing shares in the rail operator up 7c at 107.

Mr Burton said the New Zealand market had a fairly good tone today.

"There was a lot of deals crossed up before the market opened, I'd say the tone on the market's been reasonable ...

"There's a bit of profit taking here and there, but keen buying in Telecom."

There were 47 rises and 38 falls on the 150 stocks traded.

On Wall St the blue-chip Dow Jones industrial average rose 19.44 points, or 0.20 per cent, to 9587.90; the S&P 500 was up 1.70 points, or 0.17 per cent, at 1027.97; and the Nasdaq Composite Index gained 16.08 points, or 0.87 per cent, to 1868.98.

- NZPA