NZ stocks: Shares continue to push higher

6.00pm

The prospect of higher dividend payouts by Telecom added to a positive lead from overseas markets to push the sharemarket's benchmark index to the latest in a string of recent closing highs today.

The NZSX-50 gross index ended the day 3.71 points higher at 2857.44, while the NZSX all capital index closed 0.13 of a point higher at 948.85.


Forsyth Barr broker Suzanne Kinnaird said gains on Wall St on Friday had helped underpin the day's trade here.

Telecom rose 3c to 599, "possibly on the back of comment they were looking to increase their dividend payout beyond 85 per cent."

Telecom chief financial officer Marko Bogoievski said at a conference in New York on Friday that Telecom's dividend payout could go to 90 per cent of profits at the end of next financial year.

Elsewhere, the market was also helped higher by a 2c gain to 233 by Carter Holt Harvey.

Overall, the market saw "pretty reasonable turnover for a Monday" at $104.35 million, Ms Kinnaird said. This was despite a public holiday in much of Australia. Rises outnumbered falls 53 to 44 on the 165 stocks traded.

Auckland International Airport fell 11c to 715. "I suspect that's a bit of a knee-jerk reaction to reports that Whenuapai was about be approved," Ms Kinnaird said. The Sunday Star Times yesterday reported a second Auckland airport at Whenuapai was likely to get cabinet approval.

At the centre of a recent takeover stoush, lines company Powerco was down 2c to 208 today. The New Plymouth District Council said shortly after the market closed today, the matter had been "resolved to the satisfaction of the New Plymouth District Council, the Taranaki Electricity and Powerco Wanganui trusts, and Prime".

There had been some doubt as to what ratio of cash and bonds the council and trusts would receive from Australia's Prime Infrastructure for their combined stake in the company.

NGC Holdings was down 2c at 307. Indicative bids for NGC are due on Wednesday for the 66 per cent stake in the company held by AGL of Australia.

Fisher and Paykel Healthcare was up 2c to 307 ex its share split today. "Not a bad effort considering they were up strongly prior to that," Ms Kinnaird said.

Ex-dividend stocks today included: Cavalier at 14.5 cents per share unchanged at 499, Feltex 6cps, down 3c to 161, Hellaby Holdings 19cps, down 13c at 596, Nuplex Industries 13 cps, down 11c at 515 and South Port 3.75 cps, unchanged at 120.

Other stocks on the move today included Contact Energy down 5c to 603, Fletcher Building down 4c to 588, Michael Hill up 3c to 725. NZ Refining up 50c to 2190, Ports of Auckland up 10c to 690, Promina up 19c to 495, Scot Technology up 12c to 350 and The Warehouse down 4c to 424.

- NZPA