NZ stocks: Market edges higher

12.oopm


The New Zealand sharemarket edged higher in early trading today, supported by the Dow which hit a 14-month higher, good results on the local scene and Telecom.

The NZSX-50 gross index was up 9.74 points at 2218.67 while the NZSX-40 capital index was up 8.34 at 2141.94 at 11.45am.

US stocks rose as news from big retailers like Wal-Mart Stores bolstered investors' hopes that the economy and corporate profits are improving.

The Dow Jones industrial average jumped 90.76 points, or 1 per cent, to 9,412.45, its highest close since June of last year. The broader Standard & Poor's 500 Index rose 9.07 points, or 0.92 per cent, to 999.74, its highest close in about a month and the technology-laden Nasdaq climbed 37.48 points, or 2.2 per cent, to a one-month closing high of 1,739.49.

Just over a third of the $19.7 million traded on the local market turnover was in Telecom, which was up 6c at 518.

NGC powered ahead 6c to 169, just 3c off its year high, after it posted a $148 million net profit compared with $34.5 million a year earlier.

Ports of Auckland was steady on 785 after posting a 2 per cent rise in its June year net profit to $47.6 million.

Mainfreight was also unchanged on $1.29 after lifting its June quarter net profit 81 per cent to $1.1 million.

Fletcher Building was in trading halt after announcing it had agreed to buy Tasman Building Products Pty Ltd for A$230 million ($260.5m).

The purchase price will be funded by an underwritten placement of 20 million new ordinary shares and debt. At Fletcher Building's discretion, the size of the equity capital raising may be increased to 25 million shares. Building shares closed yesterday at 427.

AMP shares rose 6c to 531, BIL International rose 3c to 76, Carter Holt Harvey rose 2c to 172, Cavalier rose 5c to 500, Michael Hill rose 5c to 445, Promina rose 3c to 274, Turners Auction rose 3c to 385. and Sky City rose 2c to 920.

Infrastructure and utilities investment firm Utilico

International started trading at 233.

Fisher & Paykel Appliances rose 10c to 1460, a new high since F&P group was split up. F&P Healthcare rose 20c to 1255.

Falling stocks included, Blis 2c to 28, Independent Newspapers, 2c to 430, and Tower, 2c to 116.

There were 24 stocks to fall while 43 rose among the 111 traded to date.

- NZPA