NZ stocks: Telecom claws back from six-year lows

Telecom bounced yesterday, enabling the main New Zealand share index to recoup Wednesday's losses.

But holiday volumes were insufficient to keep a skeleton broking staff busy.

The NZSE-40 capital index ended up 13.38 points at 1881.23, compensating for Wednesday's 12-point loss substantially generated by Telecom's 23c slide to six-year lows.

Brokers put that down to a number of uncertainties surrounding the stock and the fact that it fell in the United States while the local market was on holiday.

Macquarie Equities' Nathan Lewis said Telecom regained 11c to $4.73, not because of any specific news concerning it but simply because the sector globally looked a bit more positive.

Another broker said bottom-fishers had recognised the stock as oversold.

The other feature in the market was Fletcher Energy, up 17c to $8.33 as American turbine interest Capstone again grew in value.

Smaller stocks rallied, and NZSE-SCI capital index gained 33.82 points to 5060.29.

Meagre total turnover of 8 million shares was worth $19.87 million, and rises outnumbered falls 51 to 34.

American stock markets provided a positive back-drop amid post-holiday bargain hunting and expectations of an early interest rate cut from the US central bank as the economy slows.

Among the leaders here, Air NZ domestic A shares rose a cent to $1.55 and the B shares which foreigners can own rose 4c to $2.10.

Auckland Airport fell 4c to $3.01, Carter Holt added 2c to $1.63, Fletcher Building gained a cent to $1.93 and Forests fell 1c to 28c. Lion Nathan dropped 9c to $5.01.

Technology bellwether Advantage rose 5c to $1.30, AMP lost 20c to $25.00, Tower was down 10c to $5.15, Brierley dropped a cent to 29c, Fisher and Paykel was up 3c to $7.93, and The Warehouse was down 9c to $5.90.

Finzsoft Solutions made its debut on the New Capital Markets board, rising 2c to 52c with 26,000 shares changing hands.

- NZPA