NZ stocks: Market consolidates as Telecom, CHH finish higher

5.00pm

The New Zealand sharemarket spent today's session consolidating its recent run up with top stocks Telecom and Carter Holt Harvey (CHH) finishing slightly higher.

At 5pm, the benchmark NZSX-50 index was down 0.96 of a point at 2785.29, while the NZSX-All capital index was up 0.24 of a point at 937.71.

The top 50 index has steadily risen since early May, posting a new closing high of 2788.01 on Friday last week.

Shares in top stock Telecom were up 1c at 616, its $37.8 million turnover representing 42 per cent of the $89.5 million on NZX.

Hamilton Hindin Greene broker Grant Williamson said speculation surrounding Telecom's full year result, out tomorrow, was behind the stock's gains.

"I think the market is expecting some announcement on their dividend policy, or possibly even a special dividend," Mr Williamson said.

"Of course offshore markets were weaker last night and our market has put in a pretty reasonable performance," he told NZPA today.

Among the 155 stocks traded on NZX today were 51 rises and 57 falls.

Shares in CHH were up 1c at 220 after the wood products firm today confirmed it had High Court approval to return $480 million of capital to shareholders, or 27.5c a share.

The money is about half of the proceeds from the sale of the company's tissue business to Sweden's Svenska Cellulosa AB earlier this year.

"I think that's been widely expected by the market," Mr Williamson said.

In other market news, financial services company Tower Ltd said it had repaid all of its senior debt two years early. Its shares were a cent higher at 193, from 108 just over a year ago.

"I understand GPG's been buying a few more (shares) in that stock (Tower)," Mr Williamson said.

"GPG is up to (nearly) $2 (a share) and we haven't seen those levels for a few months now so there's been a bit of interest in that stock.

Guinness Peat Group shares closed up 2c at 199, their highest closing level since mid May.

Bids for a half share in gas and electricity lines company PowerCo close on Friday. Today, the firm's shares were unchanged at 212.

Opio Forestry Fund was 30c higher at 88 after Dunedin City Council's City Forests yesterday launched a $12.7 million takeover bid to acquire 1360ha of trees in three blocks in South Otago and Southland from Opio.

City Forests is offering 85c for each of Opio Forestry Fund's 14.96 million fully paid units on issue, conditional on obtaining 75 per cent acceptance.

"It just follows on with consolidation in that sector," Mr Williamson said.

Other stocks to move included: AMP down 2c at 693, Austral Pacific up 10c at 330, Contact Energy down 3c at 599, Ebos down 4c at 372, Genesis up 5c at 75, Infratil down 6c at 307, Lion Nathan down 8c at 767, Ports of Auckland up 4c at 705, NZ Refining up 68c at 2150, and Auckland International Airport up 7c at 707.

- NZPA