NZ stocks: Market firms on cheery economic data

The sharemarket recovered from a lacklustre start today to finish higher, on the back of the release of better than expected economic data.

The benchmark NZSX-50 gross index rose 5.96 points to 2666.75, while the NZX-All capital index was up 3.19 points at 894.94.

The latest gross domestic product (GDP) data showed the economy grew 2.3 per cent in the three months to March, outstripping analysts' expectations of a 1.5 per cent growth.

ABN Amro Craig's Bryon Burke said there was renewed interest in a number of stocks on the back of the GDP release, including bellwether stock Telecom, which rose 5c to 584.

Mr Burke said Telecom has performed well lately, up 6 per cent for the month so far.

Other stocks to benefit from the cheery economic news were Fletcher Building up 9c at 464, Auckland International Airport up 4c at 659 and The Warehouse up 3c at 428.

Total market turnover for the day was worth $113.6 million. Of the 148 stocks traded there were 57 rises and 46 falls.

Powerco continued to rise today, up 2c to 209c. Yesterday the company said indicative bids were in for the 53.65 per cent stake being sold by the New Plymouoth Council, Taranaki Electricity Trust and Powerco Community Trust company. The offers will be considered next week

Stock exchange operator NZX was unchanged at 850, after today announcing it was considering selling the naming right's to the sharemarket's key indices.

Air New Zealand was also unchanged at 40c, after telling analysts at a briefing today the company will have achieved cost savings of $50 million by the end of July.

Wrightson was up 6c at 153, in the run up to the payment of a 9c special dividend on Monday. Wrightson announced the dividend, to make use of $10 million in tax imputation credits, after Rural Portfolio Investments was successful in its partial takeover offer.

Other stocks on the move today included: Contact Energy down 5c at 572, Fisher & Paykel Appliances down 5c at 572, Ports of Tauranga down 9c at 506, Independent Newspapers down 3c at 465, AMP up 13c at 695, Kirkcaldie & Stains up 20c at 245, Lion Nathan up 5c at 740 and Richmond up 5c at 305.

- NZPA