NZ stocks: Market firms as other markets soar

7.00pm

The sharemarket firmed solidly today but had nothing like the gains of most overseas markets.

"We're up, although we've had nothing like the volatility they've had overseas," said Forsyth Barr Frater Williams executive director Don Turkington.

World markets had been underpinned by a good report from Microsoft. New Zealand had held up when Wall Street and others had dived earlier this month and it was proving equally unresponsive on the upside.

Most of the 16.51 gain in the NZSE-40 Capital Index to 2006.18 came from the two leading stocks, Telecom and Carter Holt Harvey.

Telecom rose 7c to 514 and again had solid turnover worth $30 million. ABN Amro Craigs broker Nigel Scott said Telecom's solidity in the face of high volatility overseas had been the feature of the local market over the week.

Carter Holt had a delayed response to its result on Wednesday, rising 4c to 164. Dr Turkington said the stock had finally achieved some traction after what was a good result and a seemingly smart purchase in Tasmania.

The market's turnover of $96.8 million was boosted by a trade of $5 million DB Group shares at 593 worth $30 million. Dr Turkington said the crossing was unusual but probably too large for Heineken to be increasing its stake via creep provisions. It closed 5c lower at 590.

Restaurant Brands responded badly to its result yesterday with lingering concerns about its venture into Victoria knocking it lower. It fell as low as 158 before recovering to end 10c off at 162.

AMP responded to the stronger overseas markets, with a 55c gain to 1490, continuing its partial recovery.

Fisher & Paykel Healthcare meanwhile responded to the Nasdaq's 3.2 per cent gain with a 25c rise to 1025.

Fletcher Building closed 2c up at 294 and Contact rose 1c to 386.

Powerco lost 11c to 170 following the placement of 93 million shares at 160. Powerco has raised the $102 million it sought from institutions as part of a "jumbo" offer announced earlier this week, and the remaining $48 million will be offered to retail investors.

There were 60 rises in all and 39 falls among the 138 stocks traded. The top 10 index gained 8.56 points to 903.66 while the small stocks index dropped 18.83 points to 5465.36.

- NZPA