NZ stocks: Market led higher by Telecom

The sharemarket was led higher today by market heavyweight Telecom after it reported its second quarter result.

Late morning Telecom was 9c higher at 542 after it announced its net profit in the December quarter rose 15.8 per cent to $161 million from $139 million.

The result bettered average expectations of $155 million and helped lift the half year profit to $312 million from $300 million in the half year to December 2000.

The NZSE-40 capital index was up 11.89 points to 2083.73 just after 11am. Volume was steady at $26.3 million.

ABN Amro broker Nigel Scott said the market liked Telecom's result, which was near the top of expectations during a tough period of trading.

He said the company appeared to have got a handle on costs and in the mobile phone market there seemed to be less competitive pressure and better margins.

Ports of Auckland rose 2c to 550 after it lifted its December half year net profit by 9 per cent to $22.75 million.

As the company had flagged to the market, it substantially lifted its half year dividend to 12.5 cents from 9 cents, which it has paid for the past five years.

Mr Scott said the result was solid and the stock would be a strong defensive one with continued steady growth.

There was good interest in Fletcher Forests which rose 2c to 25c. Nearly 3.9 million of the preference shares traded and 3.3 million of the ordinaries.

Carter Holt Harvey gained 3c to 186, while Fisher & Paykel Healthcare added 9c to 1074 on a healthy turnover.

Takeover target Bendon fell 3c to 187.

Cavalier continued to gain after its well received result yesterday. It rose 5c to 600.

Other movers included: Rubicon, up 3c to 63, Sky City, up 4c to 610, Waste Management, down 7c to 303 and Wrightson, up 2c to 124. The latter reports on Thursday.

There were 30 rises and 28 falls among the 107 stocks traded.

- NZPA