NZ stocks: Shares make ground despite softer Telecom

The New Zealand sharemarket carved out modest gains today despite a drop in lead stock Telecom.

By the 5pm close the benchmark NZSX-50 gross index was up 6 points or 0.26 per cent at 2278.52, while the NZSX-40 capital index was 7 points or 0.32 per cent higher at 2181.75. Turnover was a healthy $138 million on 42 million shares traded.

Amro Craigs Equities retail advisor Bryon Burke said: "It was one of those days when the market was stronger than the index portrayed... Unfortunately the index was somewhat dominated by Telecom today."

Telecom shares finished today's session 4c lower at 506 after reaching an intra-day low of 502 -- their lowest level in two weeks.

"There seems to be a bit of a link between the strength of the New Zealand dollar and overseas selling in Telecom", Mr Burke said.

The New Zealand dollar opened up above the key US$60c mark this morning.

"It must be an attractive point for overseas investors to take a few profits in New Zealand", he said.

However the fact that the index was up despite Telecom's fall meant the rest of the market was showing "good positive tone, following on from overseas obviously".

Among strong performing stock today were NGC Holdings which rose 5c to 165, Contact Energy up 6c to 505, and the Fisher & Paykel stocks, with Appliances up by 20c to 1460, and Healthcare up 30c to 1300.

Elsewhere, Mr Burke said there was some profit taking in evidence on Auckland International Airport which fell 7c to 650, and Sky City which fell 6c to 864.

Stocks to rise today included : BayCorp Advantage up 3c to 256, Briscoe Group up 4c to 190, Cavalier Corp up 4c to 520, Fletcher Forests up a cent to 129, Fletcher Building up a cent to 428, Freightways up 4c to 182, Independent Newspapers Ltd up 7c to 458, Mainfreight up 9c to 144, Michael Hill up 6c to 426, Ports of Auckland up 10c to 810, Postie Plus up a cent to 117, Promina up 15c to 372, Provenco up 2c to 37,

Software of Excellence up 4c to 124, Steel & Tube up 3c to 363, Telstra up 11c to 549, Tourism Holdings Ltd up 2c to 158, Tower Group up a cent to 135, Tranz Rail up 2c to 109, Turners Auctions up 25c to 440, and the Warehouse up 10c to 565.

Among stocks to fall today were: Hellaby Holdings down 5c to 510, Pacific Retail Group down 2c to 255, Ryman Healthcare down 4c to 206, Sanford down 4c to 505, and Waste Management down 2c to 374.

There were 66 rises and 29 falls on 140 stocks traded today.

- NZPA