NZ stocks: Market bucks trend of sharply weaker overseas markets

The local sharemarket had a standout performance today, bucking the global trend of a sharply lower equity market due to jitters about tension in the Middle East.

"It was a pretty satisfactory day. It's against the trend everywhere," Forsyth Barr Frater Williams broker Alan Wills said.

"The New Zealand market is standing out for its stability. We are a long way from any conflict, we are seen as a safe haven, our companies are not seen as particularly expensive, we have high yields and are quite defensive."

The benchmark NZSX-50 gross index lifted 20 points from its session nadir, ending 9.04 points higher than yesterday, or 0.4 per cent, at 2526.53. The NZSX-40 capital index rose 6.66 points, or 0.29 per cent at 2286.63.

Market leader Telecom recovered from a mid session deficit of 6c to close 1c down at 581.

No 2 stock Carter Holt Harvey had a 7c gain to 204 as speculation gained momentum that it will get a a high price for its tissue business and make a substantial distribution to shareholders.

The company has said it would make an announcement by the end of the month. As well, there are indications that the timber market in the US has moved off the bottom.

No 3 stock Contact Energy also had a good day, rising 5c to 517 on speculation that Australia Gas Light is about to launch a bid for Edison Mission's 51 per cent stake.

People had feared a placement at a discount to the market and that now seemed less likely. AGL is not expected to buy at a significant premium.

Fletcher Building had a strong day, rising 7c to 436 and recouping most of the dividend it shed yesterday. It was up on indications that the slowdown in the building industry was not likely to be as sharp as first feared.

"People are thinking it will be a slowdown and not a strong correction and we are likely to quite a lot of activity in the infrastructure side which would potentially benefit Fletcher Building," Mr Wills said.

The Government was likely to spend much of its surplus on schools, roading and hospitals.

Mr Willis said Fletcher Building was also relatively cheap compared to some of the building materials firms in Australia.

Hallenstein Glasson jumped 7 per cent, 19c to 295, after the apparel retailer reported 20 per cent growth in its half year net profit to February 1.

It reported a net profit after tax for the six months ended February 1 of $6.99 million, up from $5.82 million for the same period the year earlier.

The retailer said it would sell its girls' childrens store chain and increased its dividend by 1c to 10cpc.

"It's welcome that we have had some good news from a retailer for a change because the retailers had have a fairly bad time of it lately," Mr Wills said.



Williams & Kettle fell 8c to 272 after H&G Ltd, an investment company owned by Sir Selwyn Cushing and son David Cushing, sold 3.3 million shares, 14.7 per cent, at 245 - a 12.5 per cent discount to yesterday's price. H&G said it would retail a 19.9 per cent stake for at least two years.

Total market turnover amounted to 39 million shares, worth $87 million of which $30 million was in Telecom.

There were 40 stocks that rose and 54 that fell among the 148 stocks traded.

Air New Zealand was unchanged at 38 cents, as investors appeared unmoved by news the company faces a potentially huge tax bill.

Tower Ltd gained 4c to 151 as did Sky City to 432. The casino operator has been under pressure later on concern about its Australian operations.

Lion Nathan rose 3c to 685.

Fisher & Paykel Healthcare eased back from its big run of the last few days, falling 10c to 1170.

Other losers in the top 50 were: ANZ, down 10c to 2139, AMP, down 5c to 615, TrustPower, down 5c to 690, and Waste Management, down 5c to 425.

Among the other stocks, Vending Technologies rose more than 10 per cent, up 11c to 104, on turnover of 40,105, Colonial Motors fell 11c to 275 and DB Group fell 10c to 806.

- NZPA