NZ stocks: Market has firm tone

12.00pm

The sharemarket had a firm tone today, responding in part to Wall Street's response to an encouraging US and global economic outlook.

The benchmark NZSE-40 capital index was up 9.93 points to 1965.20 on turnover worth $21 million by 11.30am. AMP responded 35c to 1400 to news it was cutting costs including getting out of banking.

Another company which has had a rough run, credit services firm Baycorp Advantage, rose another 9c to 213 to go with yesterday's 10 per cent gain after the company made soothing noises yesterday about the outlook and appointed a new chairman.

Baycorp Advantage, created through the merger of New Zealand's Baycorp Holdings and Australia's Data Advantage a year ago, shed 50 per cent of its value on Tuesday after the company warned it expected to show little earnings growth in the year to June.

There was nearly $3 million of Baycorp stock traded.

Market leader Telecom rose 4c to 487 on turnover worth $7 million.

This month's star, Port of Tauranga, initially rose 20c to new heights of 450 but later retraced to 430. The company has had a stellar run since its share split this month. Major shareholder Infratil yesterday revealed it was continuing to sell down its holding now at just over 13 per cent.

Profit takers pegged Fletcher Building back another 5c to 320 today. It fell 6c yesterday, having hit a record of 331 on Wednesday.

Carpet maker Cavalier Corp maintained great form this week, rising 5c to 714 following a 64c surge yesterday following an announcement yesterday that it was forecasting a $9 million half year net profit and was aiming for inclusion in the top 40 index.

The company also revealed plans for a two-for-one share split early next month.

Steel & Tube rose 1 to 316 possibly on prospects of of a free trade deal between the US and Australia and or New Zealand.

Rises outnumbered falls 33 to 16 among the 87 stocks traded.

- NZPA