NZ stocks: Market leaders lift shares again

The New Zealand sharemarket continued to build on yesterday's modest gains in trading today, buoyed by rises in a number of leading stocks.

By the 5pm close the NZSX-50 gross index rose by 8.6 points or 0.4 per cent to 2217.55 while the NZSX-40 capital index was up 5 points or 0.2 per cent to 2138.69.

However, turnover like yesterday was relatively thin at $52.46 million.

Macquarie Equities broker Rob Gwyther said today's gains were principally driven by market kingpin Telecom, NGC and the Fisher & Paykel stocks.

Telecom rose 4c today to 516 on turnover worth $13.46 million. Mr Gwyther said the stock may have been oversold in profit taking after buying last week in advance of the investment strategy of the New Zealand Superannuation Fund.

He said discount retailer the Warehouse was still subject to the same round of profit taking, its shares were down 6c to 515 today. Mr Gwyther said as well as reacting to encouraging signs of a global pickup from the US, the local equity market was currently "getting good reinforcement from results" at the moment.

Energy company NGC today posted a $148 million net profit after tax for the June year, well up on the $34.5 million returned a year earlier , even after subtracting the one-off $78.9 million injection from the sale of two power stations. The result helped NGC shares 4c higher to 167 today.

Also "quite helpful to the market" today was the news that Fl etcher Building had agreed to buy Australia's Tasman Building Products Pty for A$230 million ($260.5 million) -- the company's second big Australian purchase in a year. Fletcher Building shares were unchanged on 420.

Both Fisher & Paykel stocks were up today, with Appliances gaining 5c to 1455, and Healthcare up 10c to 1245.

Other stocks to rise today included: Auckland International Airport up 4c to 634, AMP up 15c to 540, BayCorp Advantage up 3c to 204, Brierley Investments Ltd International up 4c to 77, Carter Holt Harvey up 2c to 172, Cavalier Corp up 5c to 500, Hellaby Holdings up 3c to 453, Hallenstein Glassons up 5c to 295, Promina up 7c to 278, Restaurant Brands up 2c to 132, Sky City up 2c to 920, Steel & Tube up 2c to 379, TelstraClear up 7c to 535, Tourism Holdings up 2c to 142, and Tranz Rail up 2c to 100.

Stocks to fall included: Air New Zealand down a cent to 49, Briscoe Group down 4c to 173, Independent Newspapers Ltd down 2c to 430, Tower Group down 2c to 116, and Waste Management down 3c to 379.

Rises outnumbered falls 55 to 39 on 138 stocks traded.

- NZPA