NZ stocks: Market propels itself into positive territory

The New Zealand sharemarket closed marginally stronger in the half day's session, with several of the blue chip stocks finishing in healthy form.

The NZSE-40 capital index closed up 0.03 per cent at 2077 as market players started packing up for the four day Easter break.

Fletcher Forests announced this morning that it had entered into an agreement with the receivers of the failed Central North Island Forest Partnership (CNI).

Under the agreement, Fletcher Forests will progress -- on an exclusive basis -- to buy the CNI assets although the rest of the details are still sketchy.

The much-speculated on deal was not news to the market, boosting Forest's share price by only 1c to 26.

Brian Stewart of First NZ Securities said the announcement confirmed share valuations at the 30c mark.

"If there had been another buyer of the partnership they may have lost some synergy benefits, so there was down-side risk ... but there is probably not going to be a lot learned out of the buy-out."

Telecom closed down 5c at 487, continuing to give back gains made earlier in the week.

"We really don't believe there was that many short positions, so talk of a squeeze is somewhat overdone. It's more of a reaction taking it back to where it was before," Mr Stewart said.

- NZPA