NZ stocks: Stars of 2003 shine brighter on bullish market

Most of this year's sharemarket big bright lights -- Fletcher Building, Sky City, Auckland Airport and the Fisher & Paykel -- shone again today, lifting key indices over 1 per cent.

Tentative buying in the morning was overtaken by at the close as portfolio buyers chased stock. Brokers said sellers were in short supply and prices rose accordingly on quite modest volumes.

There was virtually no fallout from a possible New Zealand case of variant creutzfeldt-jakob disease as it appeared the case was from eating contaminated food rather than an outbreak of mad cow disease in New Zealand cattle.

Wall Street also provided positive direction after stocks were led up on two positive economicy hinting the US economy might be regaining some vigour.

There was positive economic news at home too with the quarterly Statistics New Zealand employment report showing unemployment at a 16 per cent low and 4.7 per cent jobless much better than expected.

But economist said that could also have a downside as the Reserve Bank may consider at its next review of the cash rate on September 4 that the economy had enough momentum without another stimulatory cut in rates.

The NZSX-50 gross index closed up 23.75 points while the NZSX-40 finished up 21.78 points at 2124.39.

Volume was 25.2 million shares worth $74.2 million.

Macquarie Equities broker Arthur Lim said buying was generalised.

"There was not a lot of stock available and buyers had to pay up."

He said the move was against a backdrop of good results and profit upgrades, rather than the downgrades that prevailed in March when Sars and the Iraq War disturbed the market.

Fisher & Paykel Appliances, one of the star performers on the market this year, spurted another 35 cents ahead today to a record 1390.

Twenty per cent owned sister company F&P Healthcare, which said yesterday first half revenue was up 25 per cent, jumped 23c to 1210.

Another of this year's stars, Fletcher Building was helped by the positive employment figures, jumping 17c to a record high of 415. Expected to report a bumper profit on Wednesdya, it is up nearly 25 per cent for the year.

Lion Nathan also responded to a positive news, with a 17c jump to 625. The Australasian brewer said yesterday it was on track to lift net profit to A$180 million this financial year.

Auckland Airport, favoured by many brokers at the start of the year but bushwacked by Sars and the Iraq war, rose 12c to 598.

Market heavyweight Telecom was still basking in the afterglow of Tuesday's well received $709 million profit. It rose 2c to 530 to take the gains this week to 3 per cent. There was again heavy turnover worth $33 million today.

Sky City, another solid performer this year, jumped 27c to 929.

Number 2 stock, Carter Holt Harvey rose 3c to 165.

AMP lifted off the floor of its recond low trading this week but only just hit $5 despite a 10c gain.

Broker Peter Lynds of Direct Broking said there were few signs of the market being affected by concerns about a suspected case of variant creutzfeldt-jakob disease case in the Waikato.

Although it could potentially affect the entire market if the case was confirmed, it would hit the likes of rural services company Wrightson particularly, Mr Lynds said. But even Wrightson recovered from a 3c fall to end 1c down at 123.

Waste collection and treatment company Waste Management rose 6c to 383, building on gains made yesterday after a favourable half year profit result and a substantial hike in its dividend.

After early weakness, Tourism Holdings closed square at 136 after it announced an improved profit forecast yesterday that saw its shares make good gains.

The Warehouse continued to prosper from this week's sales figures, up 2c to 487 but Briscoe fell 4c to an 18 month low of 172 on a negative interpretation of its sales figures.

Tower, which repaid $300 million of debt today, closed up 2c at 123.

Rises outnumbered falls 58 to 36 on 138 stocks traded.

- NZPA