NZ stocks: NZ top 50 index pushes to new closing high

6.07pm

The top 50 share index shrugged off weak markets offshore to stretch to a new closing high today.

The NZSX-50 gross index closed up 14.45 points, or 0.5 per cent, at 2794.74, the strongest closing level for the one-and-a-half year life of the benchmark index. It fractionally beat the previous high set on August 5, although earlier in that session the index made a life high.

The NZSX-All capital index closed up 5.56 points at 931.93, its highest close in over a decade.

"It's a well-bid market with a good tone and a reflection of the strong earnings season and reinvestment of dividends," said First NZ Capital broker Malcolm Davie.

Market leader Telecom continued its recent good run, adding another 2c to yesterday's 5c rise. There was solid turnover worth over $36 million.

There were more than $10m worth of Powerco shares traded after Prime Infrastructure was ordered by the Takeovers Panel to sell a parcel of its shares. The panel said it considered a recent purchase of just over 1 per cent of Powerco's shares by a Prime unit may not have been in compliance with the Code. Powerco shares closed up 3c at 209.

Air New Zealand took a 7c dive to 180 following yesterday's High Court rejection of its alliance with Qantas. The airline said it was exploring other ways of co-operation with the Australian airline that would not raise the ire of regulators.

The rest of the market was strong across the board, despite Wall Street's fall the previous day and early weakness in Sydney.

Tower gained 7c to 215 to mostly erase Friday's 9c fall following the announcement that Hanover had sold 40.5m shares ahead of Tower's inclusion on Australia's top 200 share index. Last week, Tower announced plans to spin off its Australian wealth management business.

NGC continued to push to new highs as the market waits to see if Vector will make a takeover bid. NGC was up 3c to 310.

Freightways, which yesterday went ex a 9c dividend, today nearly recouped that with a 7c gain to 253.

Other standouts on the rise included Auckland Airport, 9c to 703, Fletcher Building, 15c to 565, Waste Management, 7c to 517, Ports of Auckland, 8c to 674, The Warehouse, 7c to 434, and Steel & Tube, 4c to 432.

ANZ Bank fell 7c to 1945 after the Government said it would close a $360m tax loophole in November that Australian banks have allegedly been taking advantage off. Westpac, however, ended unscathed at 1740.

Also going against the grain, TrustPower fell 4c to 460 as did Telstra, to 506.

The small stocks index closed 33.51 points ahead at 7563.90 and the top 10 index closed up 6.56 at 1124.28.

Australian insurer Promina fell 9c to 477.

Among the smaller stocks, Ebos rose 10c to 420, 5c below its peak, Nuhaka fell 6c to 460, Turners Auctions fell 7c to 468 and Software of Excellence fell 6c to 140.

Total market turnover amounted to 35.3m shares, valued at $103.4m. There were 58 stocks up at the end of the session against 47 falls of the 147 traded.

- NZPA