NZ stocks: Market continues bounceback

The New Zealand market continued to bounce back today, following its sell-off this month which marked the beginning of the new financial quarter.

Market leaders to register the largest gains were Sky City, up 16c at 920, and Fletcher Building, up 12c at 383 ahead of a financial result expected to please the market.

The benchmark NZSX-50 gross index gained 19.53 points, or 0.92 per cent, to 2149.93 -- still down from its level of 2212 at the end of June -- and the top-40 index was up 0.84 per cent at 2083.97.

Topping turnover valued at $85.93 million was Telecom's 7.6 million stocks, worth $39.3 million.

Richard Burton of Forsyth Barr Frater Williams said the local market followed the positive direction of offshore markets.

"It's tended to be in the stocks that have adjusted back since the June 30 close ...It's the bigger market capitalisation stocks that adjusted back down, and have found support," Mr Burton said.

Telecom was up 2c at 517, Fisher & Paykel Appliances rose 24c to 1300 and F&P Healthcare was up 27c at 1162, Auckland International Airport gained 8c to 593, Sky TV rose 5c to 457, and Independent Newspapers Ltd gained 6c to 416.

"Obviously people are anticipating some good June year-end results," Mr Burton said.

"It's been pretty steady -- Telecom's only up a couple but it's fairly good volume going through, so it looks like the sell off was a bit severe at the end of June and the market's just picking back up to a fairer level."

Tranz Rail closed up 2c at 98 on news that potential bidder American rail operator Genesee & Wyoming is still mulling a counter offer.

Institution investors are trying to lever more money out of Australia's Toll Holdings, which has bid 95 cents a share for the company.

Tranz Rail shares have remained above the bid price for two weeks.

Discount retailer The Warehouse was up 6c at 483, financial services company Tower rose 1c to 119, Contact Energy was up 2c at 476, Fletcher Forests lifted 2c to 114, and Carter Holt Harvey rose 2c to 164.

On the down side, AMP lost 4c to 561, Lion Nathan shed 3c to 611, Ports of Auckland was down 6c at 760, and Wrightson Group lost 1c to 122.

There were 58 rises and 26 falls on the 138 stocks traded.

Stocks rose in New York where the Dow Jones industrial average rose 61.76 points or 0.68 per cent to 9158.45; the broader Standard & Poor's 500 Index gained 9.31 points or 0.95 per cent to 988.11; and the Nasdaq Composite Index rose 24.61 points or 1.46 per cent to 1706.02.

- NZPA