NZ stocks: Market ekes out further gains

12.05pm

The sharemarket eked out further gains in morning trading today, stretching further the two-month peaks touched yesterday.

The NZSE-40 capital index was up 2.70 points to 2008.87 at 11.40am on very light volume of $15.8 million.

The market received no direction from the US where stocks orbited the unchanged mark as investors braced for a slew of earnings reports due later in the week. The Dow Jones Industrial average rose 1.09 points to 8786.

Star performer today was Fletcher Forests where the head shares rose 6c to 107 to line up with the preference shares, also up 6c to 107.

Fletcher Forest 17 per cent owner Rubicon rose 5c to 74.

First NZ Capital broker James Snell said the stock had lagged the gains made by other forestry stocks, which have been buoyed by pulp and paper price rises.

Sky TV continued to rise, up 7c to 370 to add to yesterday's 5c gain. It will be a big gainer from the rise of the New Zealand dollar, up above US54c today. Sky buys much of its programming in US dollars. Its two-thirds owner, Independent Newspapers, rose 4c to 338.

Air New Zealand, another gainer from a strong New Zealand dollar because of its US dollar costs, held on to yesterday's gains at 56c while importer Briscoe was up 2c to 278.

On the flip side of the currency's rise, Fisher & Paykel Appliances, which sells much of its product to Australia and the US, fell 3c to 972.

Market leader Telecom was up 1c to 468. Other movers included Lion Nathan, up 6c to 591, Fletcher Building, up 1c to 344, Westpac NZ, up 5c to 1450, Contact Energy, down 4c to 406, Sky City Leisure, down 7c to 197.

There were 39 rises and 27 falls among the 99 stocks traded.

- NZPA