NZ stocks: Retail stocks star as market starts 2004 positively

Retail stocks, led by last year's laggard The Warehouse, got the sharemarket off to a positive start on its first day of trading for 2004.

The New Zealand market's positive start today contrasted with Australia and occurred before news hit traders' screens that a possible fresh outbreak of the Severe Acute Respiratory Syndrome (Sars) virus had been reported in Asia.

The benchmark NZSX-50 index closed up 2.68 points at 2453.02, its highest close since it was started in March last year.

The NZSX-40 capital index closed up 3.93 points at 2282.26, its highest close since April 1998.

Brokers said volume was reasonable for this time of year at $47.5 million. Forsyth Barr Frater Williams broker Richard Burton said retail stocks appeared to be responding to early reports of good Christmas sales and strong credit card bookings.

The Warehouse, which lost 30 per cent last year, closed 6c up at 518. Michael Hill International gained 10c to an 11 month high of 490, Briscoe added 4c to 173, Postieplus rose 2c to 113 and Hallenstein Glasson gained 2c to 277. Going against the trend though, was Pacific Retail, which fell 4c to 236.

Underpinning the market was heavyweight stock Telecom, which rose 2c to 539, its highest close in 23 months.

Mr Burton said that since last months favourable local loop unbundling decision, things looked positive for Telecom and it looked poised to continued its run. Turnover was worth $16.7 million.

Australian counterpart Telstra closed 8c up at 554 on the local market.

Freightways rose 7c to 226 while Mainfreight rose 9c to 165.

Other standout performers were Software of Excellence, up 15c to 215, Mooring Systems, up 10c to 195 and Wellington Drive Technology, up 3c to 75.

Top 50 stocks to gain included: Cavalier, 10c to 560, Lion Nathan 4c to 686. Ports of Auckland, 5c to 800, PowerCo, 4c to 197, ANZ, 35c to 2020, and Hellaby 6c to 501.

Falling stocks included: Promina, 7c to 373, Fletcher Building, 4c to 420, Baycorp Advantage, 3c to 312, Fisher & Paykel Appliances, 8c to 376 and Sky City, 2c to 459.

In all, 58 stocks rose and 24 fell among the 132 traded.

- NZPA