NZ stocks: Market puts in positive performance

The sharemarket put in a positive performance today with both major indices nudged upwards by a rise in the shares of market heavyweight Telecom.

At 5pm, the benchmark NZSX-50 gross index was up 21.5 points to 2231.74, while the NZSX-40 was up 21.85 points at 2149.36.

Telecom finished up 7c at 502, having traded $6.6 million worth on volume of 1.3 million.

Telecom carries a 28.8 per cent weighting in the NZSX-50.

On NZX today, there was $51.6 million worth of shares traded on volume of 22.9 million.

Among the 135 stocks traded were 51 rises and 35 falls.

ABN Amro Craigs operator Matt Willis said the news of the day was Fletcher Challenge Forests (FCF) announcement that it intends to sell its entire forest estate to United States company The Campbell Group for $685 million.

The forest is valued at $728 million, but had previously been on the books at $1 billion, Mr Willis said.

"The fact that they (FCF) have got a deal of that magnitude in the winds is very significant," he told NZPA today.

"For too long the company's been in a sense of limbo, especially from an investor's point of view.

"The intention (by FCF) to change the nature of its business has been well known for some time. It's been a matter of implementing the changes and that's what's happened today," he said.

FCF finished up 9c at 124, having traded $1.3 million worth on volume of 1.06 million.

If the sale went ahead FCF would redirect its business to focus on high value marketing, distribution and processing activities.

It would also change its name.

On Friday FCF posted a net loss of $271 million for the June year.

Elsewhere, freight and courier company Freightways set its share price at 160c this morning in its $141.5 million capital-raising and listing on the New Zealand Exchange.

Freightways' share offer to NZX firms and institutional investors closes on September 26, and the shares list on September 29.

Freightways shares were down 2c at 102 at 5pm.

Stocks on the rise today included: Auckland International Airport up 5c to 647, AMP up 7c to 765, Fisher & Paykel Appliances up 5c to 1455, Lion Nathan up 9c to 604, and Rubicon up 5c to 75.

On the fall were: Hallenstein Glassons down 7c to 290, Ports of Auckland down 20c to 780, Cavalier down 2c to 498, and Wrightson down 7c to 131.

- NZPA