NZ stocks: Market hits 4-1/2 year high

New Zealand's sharemarket hit its highest point in four and half years today, defying negative trading on the Dow and most Asian markets.

At closing time the former benchmark NZSE-40 capital index was up 7.87 points to 2226.49 - the highest close since May 1999.

Its successor, the benchmark NZSE-50 index closed up 6.24 points or 0.27 per cent, to 2339.86 on volume of 21.4 million shares worth $73.7 million.

During the day it peaked at 2342.03, the highest point since the index was introduced in March .

The moves coincided with the New Zealand dollar touching US63.80c, a level not seen since October 1997.

Telecom dominated trading, unchanged at 504 on turnover worth $26,800.

Air New Zealand was also static at 46c ahead of an expected announcement either today or tomorrow as to whether it would appeal the Commerce Commission's rejection of its proposed alliance with Qantas.

Auckland International Airport, fell 5c to 679 as profit-takers moved in after an upbeat AGM today. The company said record passenger volumes this summer would see its profit this year comfortably exceed last year's .

Brokers said the company's health was well known and it was no longer a cheap stock.

"I suggest that result has been pretty well built into their price, which is close to an all-time high," Greenslades broker Paul Valk told NZPA today.

He thought the airport's shares were close to their valuation and "there's certainly no rushing out and buying it so far."

Carter Holt Harvey inched up a cent to 188 on solid turnover after announcing yesterday it was reviewing the future ownership of its healthy tissue products division.

Investors anticipated the announcement, pushing the stock up 6c yesterday , and brokers said it was clear that any developments were unlikely until the first quarter of next year.

Buildings products company Fletcher Building rose 9c to 413 after the national median house price jumped a whopping 5.6 per cent in October , and 20 per cent compared to a year ago.

"With Fletcher Building people have inevitably been trying to pick the top of the building cycle and as we're sitting here, it still looks like the top is still a way away yet," said Stephen Wright of ASB Securities.

Two ports companies were also displaying good health -- Ports of Auckland rose 16c to 786 on the back of fresh data showing a 7 per cent rise in container volumes for the 12 months to October, and Port of Tauranga rose 12c to 413.

Other rises included ANZ Bank up 38c at 1900, Sky TV up 10c to 525, Wakefield Hospital up 7c to 202, Fisher & Paykel Healthcare up 10c at 1190, Sky City up 2c at 475, and The Warehouse up 5c at 580.

ANZ's rise was thought to be related to the close of its rights issue to raise capital for the purchase of the National Bank, Mr Wright said

Those on the downside included F&P Appliances down 8c at 368, Steel & Tube down 9c at 370, and Contact Energy down 4c to 530 after a "fabulous run", Mr Wright said.

Also on the downside was fast food operator Restaurant Brands, which plumbed a new year low of 112 after issuing a $2 million profit downgrade yesterday. It closed down 6c today at 114 on a solid turnover of 97,600 shares.

Restaurant Brands, whose shares were issued in 1997 at 220 each, blamed the downgrade on its fried chicken chain, KFC.

Overseas, the Dow Jones industrial average was down 74.07 points at 9636.76, the broader Standard & Poor's 500 Index was down 7.1 points at 1036.53, and the Nasdaq Composite Index was down 18.58 points at 1891.03.

- NZPA