NZ stocks: Market closes higher after Wall Street gains

The New Zealand sharemarket closed in the black today following on from large gains on Wall Street overnight.

The benchmark NZSX-50 gross index was up 0.32 per cent, or 7.41 points, at 2288.96, while the top-40 index gained 0.51 per cent to close at 2193.10.

Topping turnover of 59.34 million valued at $121.80 million was Telecom's $63.0 million.

Stephen Wright of ASB Securities said the market was firm with good volumes traded during the day. However, Telecom disappointed, ending the session up 1c at 498 having traded up to 8c higher earlier in the day.

"It seems to be (because of) selling from Asia coming through each night," Mr Wright said.

"The Telecom stock is where offshore people go to first when they're looking at New Zealand ... it bears the brunt of selling."

Air New Zealand closed up 2c at 53 after its announcement late yesterday that it planned to make large savings over the next four years, including the 15 per cent reduction of its 10,000-strong workforce.

"They're taking advantage of a pause while waiting for the regulatory approval (for its alliance with Qantas)," Mr Wright said.

"Qantas isn't making aggressive moves yet. It achieves a big breathing space, allowing Air NZ to restructure."

Qantas and Air NZ have appealed a negative decision on their proposed alliance from the Australian competition authority, and are awaiting a decision from the Commerce Commission later this month.

Carter Holt Harvey rose 3c to a three-month high of 181, although it was the first time it has closed at this level since late January. The No 2 stock reports third quarter results next week.

Independent Newspapers Ltd was down 1c at 462, AMP lost 29c to 783, Telstra was down 3c at 560, and The Warehouse lost 6c to 561.

Among the smaller stocks, Hellaby Holdings lost 5c to 500, Designer Textiles was down 4c at 101, Cavalier shed 5c to 525, jeweller Michael Hill lost 4c to 426, and clothing retailer Postie Plus was down 1c at 118.

Sky City gained 5c to 868, Tranz Rail gained 2c to 118, Trustpower rose 20c to 540 on just 11,000 stocks, Auckland Airport was up 3c at 639, Fletcher Building rose 2c to 427, and Lion Nathan was up 15c at 645.

Fisher & Paykel Appliances closed up 10c at 1480, while F&P Healthcare rose 7c to 1270.

New Zealand vodka maker 42 Below had a disappointing first day on the exchange, closing at 38c having spent much of the session about 40c.

The stock, which had an initial public offer price of 50c, saw 1.2 million shares traded today of the total 31 million shares on issue.

Shares in NZX closed up 12c at 460 after the exchange said its third-quarter net income was $929,000.

On Wall St, the Nasdaq Composite Index rose 9.66 points to 1943.19, its highest close since January 2002; the Dow Jones index advanced 48.60 points to 9812.98, its highest close since May 31, 2002; and the Standard & Poor's 500 was up 4.13 points at 1049.48, ending at its best level since June 5, 2002.

- NZPA