NZ stocks: Market finishes week with flurry of activity

6.30pm

The sharemarket finished the week strongly with both major indices in the black and "some exciting moves in the corporate sector", a broker said.

At 5pm, the benchmark NZSX-50 gross index was up 26.6 points at 2214.91, while the NZSX-40 capital index was up 20.47 points at 2136.71.

Turnover today was $118 million on 38.5 million shares traded. Among the 148 stocks traded were 63 rises and 37 falls.

Market heavyweight Telecom finished up 11c at 505, having traded $49.1 million worth on volume of 9.8 million.

ABN Amro Craigs broker Matt Willis said that once again, National Australia Bank's (NAB) successful play for a share of troubled Australian insurer AMP was the news of the day.

There was $11.2 million worth of the insurer's shares traded on volume of 1.6 million today

AMP finished up 37c at 745, its highest level in 3-1/2 months.

Earlier this week, NAB raised its stake in AMP to 5.4 per cent after spending A$206 million ($233.9 million) on 34.3 million shares in a late-night and early-morning buying spree.

"The story of the day is the insurance sector with AMP up 2 per cent and Promina up 7 per cent," Mr Willis told NZPA today.

Promina shares finished up 25c at 330.

In other stock market news, hire company Hirequip posted a better than expected net profit after tax of $5.76 million, its shares finishing up 1c at 74.

Australasian debt collector Baycorp Advantage returned an annual net loss of A$19.4 million ($22 million), compared with A$300 last year.

Baycorp's shares responded favourably, finishing up 15c at a fresh seven-month high of 245.

"Baycorp's result has gone down very well with the market. It was a big turn around (in final result) for them," Mr Willis said.

"What the share price indicates is that the market feels they (Baycorp) are back on track and have positive earnings growth going forward."

Beleaguered rail operator Tranz Rail confirmed a net loss of $2.6 million, compared with last year's deficit of $122.7 million, its shares closing unchanged on 99c.

New Zealand Oil and Gas (NZOG) posted a June year loss of $756,000, 151 per cent down on last year's profit of $1.5 million. NZOG's shares finished up 1c at 32.

Pyne Gould Guinness (PGG) returned a $12.7 million net profit after tax, slightly down on last year's $12.8 million. PGG shares finished down 4c at 126.

Two other stocks on the up today were those of Independent Newspapers Ltd (INL) and Sky TV. Yesterday, INL offered the equivalent of $4.63 for each Sky share it does not already own, about a third of the company.

The offer looks set to succeed, Mr Willis said.

By market's close today, INL was up 5c at 436, while Sky was up 10c at 475.

Other movers on the market were: Auckland International Airport up 12c at 630, Cavalier down 4c at 500, DB Breweries up 15c at 700, Fisher & Paykel Appliances down 5c at 1460, GRD up 10c at 145, NZ Refining down 60c at 1590, Pacific Retail down 6c at 202, Ports of Auckland down 10c at 780, Sky City Entertainment up 19c at 897, and The Warehouse up 6c at 512.

Meanwhile on the overseas markets Wall Street finished higher yesterday after two reports showed the United States economic recovery is accelerating. The blue-chip Dow Jones industrial average added 42.87 points to 9376.66.

The broader Standard & Poor's 500 Index rose 6.11 points to 1002.90.

In London top shares fell, with the leading FTSE 100 share index ending down 8.4 points at 4198.0.

Japanese stocks fell for a second day as investors in profits on recent winners, including steel makers and heavy machinery producers. The Nikkei average closed down 83.77 points or 0.81 per cent at 10,225.22.

- NZPA