NZ stocks: Shares move higher as results provide support

12.45pm

The New Zealand sharemarket picked up steam this morning after a slow start, with a string of good results fuelling its move higher.

At noon the benchmark NZSX-50 gross index was 6.46 points or 0.27 per cent higher at 2427.26, while the NZSX-40 capital index was 8.21 points or 0.37 per cent higher at 2239.82.

Turnover by 11.30am was worth $19.54 million with 40 rises and 30 falls among 116 stocks traded.

"The market's trying to go better", AMRO Craigs Equities' Nigel Scott told NZPA.

"We had (a) round of pretty good results yesterday," he said singling out NGC Holdings as particularly good.

NGC continued to rise today adding 7c to 234. Yesterday, it rose 9c after posting an improved half-year result and higher tax free dividend.

"The key thing that seems to be coming through in a lot of these results is incredibly strong dividend flow," Mr Scott said.

"You've got some of your major companies giving you close to 10 per cent gross yield. People will look at that versus some of the yields they're getting elsewhere."

Port of Tauranga's tightly held shares were unchanged at 450 after the company today reported a flat December half year net profit of $14.7 million but lifted its dividend from 6 cents per share to 7 cents.

Dual listed trans-Tasman credit check business Baycorp Advantage Ltd yesterday posted an interim net loss of A$149.8 million ($171.33 million) but pointed to a strong operating performance as a sign of future growth. Its shares were a cent higher at 316.

Elsewhere on the market, Telecom was a cent lower at 556, and it accounted for $4.79 million of the turnover by 11.30am.

Among second tier companies, Carter Holt Harvey rose 3c to 191, Contact Energy was unchanged at 507 and Fletcher Building was unchanged at 410.

Fisher & Paykel Appliances was up 3c at 392, and Healthcare was 5c higher at 1179.

Rural services company Wrightson continued to slide today losing 2c to 121. Yesterday, it lost 6c after disappointing the market with its first half result.

Tranz Rail also reported yesterday, its shares plunged 9c to 140 this morning on big writedowns and a negative headline figure.

Drycleaning and linen company Taylors Group rose 5c to 275 after reporting a 15.5 per cent increase in profit for the half year.

Tourism Holdings Ltd yesterday reported a drop in its December half profit, but was up 5c to 149.

"A lot of the stocks have been sold off either just before or during their results over the last three weeks," Mr Scott said.

"Many of these results have been at or above expectations, the market is realising at this stage maybe we don't have to be too aggressive on the sell side."

Also on the move this morning were: Briscoe Group up 6c to 146, Independent Newspapers Ltd up 10c to 475, Kirkcaldies down 5c to 304, Michael Hill up 3c to 530, Mooring Systems up 10c to 300, Ports of Auckland up 5c to 735, Sky TV up 7c to 520, TelstraClear down 4c to 526, TrustPower up 5c to 680, and the Warehouse up 3c to 440.

- NZPA