NZ stocks: Stocks build on last week's 3pc surge

The New Zealand sharemarket continued its recent good run yesterday, with market major Telecom firm on solid turnover helping to drive the NZSE-40 towards the 2000 mark.

The NZSE-40 capital index closed up 14.36 points, or 0.73 per cent, at 1977.40. On Friday the top-40 index capped a buoyant week with a 2.8 per cent jump.

Yesterday, turnover totalled 32.07 million shares worth $120.07 million.

"Generally the market was quite good," Merrill Lynch broker Richard Leggat said.

Telecom reached 600 early in the morning but eased back to close up 4c at 589 on "very good" turnover of 10.38 million shares worth $61.46 million.

Greenslades client adviser David Fergusson said there was a reasonable crossing of Telecom shares just after the market closed.

"We saw 1.5 million Telecom shares cross at 593.5 so that bumped the turnover up at the end of the day."

Credit Suisse First Boston's David Price said earlier in the day the stock had withstood a recent bout of broker profit downgrades.

Fletcher Challenge stocks also gained. The Energy division rose following Friday's announcement that Royal Dutch Shell would have a second go at convincing the Commerce Commission it would not gain or increase dominance in the gas market if it bought Energy in a $4.6 billion deal.

"How much more they are prepared to offer up to the Commerce Commission remains to be seen. From what I understand it's not enough," Mr Price said of the likely divestments Shell would have to make.

Nonetheless, optimists dominated and Energy closed up 11c to 875.

Fletcher Forests was up 1c to 37 and Building rose 10c to 196.

ANZ gained 40c to $18.45 and Lion Nathan added 10c to 495.

Axa put on 15c to 372 after Monday's announcement that the company would establish a new asset management company in Australia and New Zealand with Alliance Capital Management.

Auckland Airport gained 11c to 301, also on robust volumes. Buying came from two "very interested parties" just after 1 pm, Mr Fergusson said.

Other gains included AMP, 16c to $22.53; Tower , 11c to 490; and Telstra , 10c to 815.

On the downside, INL lost 15c to 340; Radioworks , 25c to 760; and Savoy, 3c to 25.

- NZPA