NZ stocks: Shares finish higher as Telecom rises and Kiwi dips

The sharemarket closed higher today after lead stock Telecom reversed modest recent losses and the strengthening US dollar gave New Zealand's exporting companies some reason for optimism.

By the 5pm close, the benchmark NZSX-50 gross index was up 8.10 points or 0.31 per cent 2610.51. The NZSX-All capital index was up 3.07 points or 0.35 per cent at 884.14.

Macquarie Equities' David Cleal said: "a bit of a recovery in the Telecom share price probably kept the index going".

Telecom finished the session 4c higher at 574. Fellow telco TelstraClear added 18c to 542 despite news of the resignation yesterday of the chairman of its Australian parent.

Among the second tier stocks Carter Holt Harvey was unchanged at 227, Contact Energy was 2c higher at 542, and Fletcher Building was 2c higher at 456.

Mr Cleal said currency movements also provided some impetus for the market today.

The New Zealand dollar has lost the best part of 2c against the US dollar in the last 24 hours after the release of better than expected US consumer price index (CPI) figures.

The figures are the latest in a strong run of data out of the US which have raised expectations that the US Federal Reserve will move to raise rates sooner than anticipated.

"The US currency coming down against the New Zealand dollar definitely impacts on the export sector," Mr Cleal said.

"The market will be looking for those stocks that get the benefit from the depreciating kiwi."

Fisher & Paykel Healthcare which derives a large majority of its income from US sales was up 19c to 1240.

However, fishing company Sanford which generally reacts to currency fluctuations was down 5c to 495. Today Sealord with whom Sanford has been negotiating a merger, announced it had pulled out of a joint venture in the Cook Islands after less than a year because of fish supply worries.

Meanwhile, early trade today was dominated by news that Ports of Auckland had confirmed the sale of its Westhaven Marina to the Government for $52 million.

The announcement sent Ports of Auckland shares as high as 770 by late this morning, but they eased to close 5c higher for the session at 750.

Forsyth Barr research manager Rob Mercer said Ports of Auckland had received a decent price for the property but nothing above expectations.

"I think what you've seen is the market has responded to an announcement, but then when it has reassessed it that hasn't really delivered higher value than was previously expected," he said .

Sharemarket operator NZX was up 15c to 925 today after this morning announcing a first quarter net profit of $869,000.

ABN Amro Craigs broker Matt Willis said the result was a pleasing one.

"I think it would be consensus view that (the result) is tracking well ahead of expectations," Mr Willis said.

ASB Securities head of advisory Stephen Wright said NZX's share price was "a bit ritzy" and that he had expected it to level off for some time.

"Of course those (the share price) reflect low liquidity and a small company," Mr Wright said.

"If anybody wants to buy any (NZX shares) or build up a stake then they've just got to pay up, pay the price."

Elsewhere there was continued interest in takeover target Tenon which closed 4c higher at 197, 12c higher than Rubicon's $1.85 a share partial takeover offer.

ABN Amro Craig's broker Bryon Burke said speculation the Rubicon bid might flush out more potential bidders for the wood processor had "inspired" a few investors.

Rubicon shares finished unchanged at 87 today, while its 20 per cent owner Guinness Peat Group was 2c higher at 210.

GPG today announced it was planning to buy the remaining 36 per cent of shares it does not own in the holding company that owns British textile manufacturer Coats Group.

Michael Hill which today said its same store sales for the nine months to the end of March were up 6 per cent on the same period a year ago was down a cent to 555.

Trans-Tasman insurer Tower was well bid today although it ended the session unchanged at 169, Mr Cleal said.

Among other stocks to move today Cavalier Corp was down 4c to 489, GRD was up 10c to 240, Hellaby Holdings was down 5c to 495, Mainfreight was up 3c to 186, NZOG was up 3c to 68, Sky City was up a cent to 442, Sky TV was down 6c to 524, TrustPower was down 8c to 410, Turners Auctions was up 9c to 440, Wrightson was down a cent to 141.

Total turnover was worth $71.87 million and there were 69 rises and 37 falls among the 154 stocks traded.

- NZPA