NZ stocks: Sharemarket firms with uptick in overseas markets

12.20 pm

The sharemarket firmed today in line with an uptick in most overseas markets where the gloomy mood lightened a bit.

United States stocks rose after carmaker General Motors Corp and software maker Intuit Inc said business was unlikely to get worse, and boosted hopes that recent interest-rate cuts are halting the slide in corporate profits.

The gains came a day after the US Federal Reserve cut interest rates for a seventh time this year, and marked a dramatic change in investor sentiment.

Investors yesterday focused on the economy's weakness and pushed stocks to lows unseen since April.

The technology laced Nasdaq Composite Index reversed an early decline to gain 28.68 points, or 1.57 per cent, to close at 1859.98. The Dow Jones industrial average climbed 102.76 points, or 1.01 per cent, to 10,276.90.

Here, the NZSE-40 capital index was 4.93 points up at 2025.61 by shortly after 11am. The recent pattern of small moves on light volume prevailed with turnover limited to $10.9 million in the first hour and half.

Telecom topped the turnover at $7 million and was up 1c to 502.

Star performer was Fisher and Paykel, up 25c to 1340.

ASB Securities broker Ian Witters said it was more of the same with F&P.

The other big mover was Fletcher Building, which jumped 6c to 261. Mr Witters said investors had looked past the reported annual loss of $272 million.

The market was more interested in the $19 million profit from the company's first three months as a standalone company.

Mr Witters said it appeared Building had cleared its books and would be a beneficiary of the turnaround in New Zealand's migration patterns.

Fletcher Forests was unchanged at 31c after posting a loss of $749 million for the June year.

Mr Witters said the loss, including unusual items of $746 million, was expected.

AMP rose 11c to 2261 after posting a net profit of $A403 million ($NZ492.7 million) for the six months to June 30, 2001 from $A525 million for the same period last year.

Air NZ lost further ground, with the A shares down 2c to 105 and the Bs steady on 130.

There were 33 rises and 23 falls among the 107 stocks traded.

- NZPA