NZ stocks: Telecom, Fletcher Energy go for gold

The New Zealand sharemarket was fast out of the blocks yesterday, with Telecom and Fletcher Energy both going for gold after fears of an Intel-inspired US meltdown failed to eventuate.

Market giant Telecom rallied 13c to 598 on volume of 3.5 million shares worth $21.13 million, with buyers taking advantage of the low share price, Cavill White Securities equities dealer Alan Wills said.

And Fletcher Energy rose 10c to 910 on trade of $9.66 million worth of shares after parent Fletcher Challenge deferred payment of dividends, interpreted as signalling a deal or deals were imminent on selling the Fletcher units.

A decision on Shell's application to the Commerce Commission for competition clearance to buy Fletcher Energy is due on Friday.

Fletcher Building was also stronger - up as high as 247 during the day - but closed just 1c stronger at 241.

The increases helped buoy up the NZSE-40 Capital Index, which closed 12.34 points (0.62 per cent) higher at 1986.98.

Turnover was weak even for a Monday, totalling $74.7 million, although rises outnumbered falls 56 to 47 among the 152 stocks traded.

Mr Wills said the local sharemarket breathed a sigh of relief when US markets managed to resist a massive drop in Intel.

On Wall Street, the Dow Jones climbed 81.85 points, or 0.76 per cent, to 10,847.37 after dropping more than 140 points at the opening bell.

However, Intel's shares tumbled more than 21 per cent to end down $US13-35/64 at $US47-15/16, knocking roughly $US95 billion in market value off one of the world's most widely held stocks.

A dizzying 308 million shares traded, setting a record for biggest volume in one company in a single day on the Nasdaq.

The Intel downdraft pulled down the technology-driven Nasdaq composite index, holding it in the red despite a sharp rebound from a 6 per cent loss in the morning.

The Nasdaq closed down just 25.11 points, or 0.66 per cent, at 3803.63.

"All eyes will be on the US overnight," Mr Wills said.

On the local market, Fletcher Forests, which did not plan to pay a dividend, was left out of the Fletcher frenzy and closed unchanged at 80.

Number two stock Carter Holt Harvey and top 10 stock Auckland Airport both weakened 1c to 170 and 274 respectively. Fisher and Paykel closed 10c lower at 710 while Tower fell 3c to 503.

But Baycorp took more of a battering, down 20c at $10.80, while Telstra plummeted 38c to 760 after going ex a A10c dividend.

On the upside, new listing Genesis rocketed ahead to hit 750 during the day, and closed 48c higher than Friday's close at 697.

Advantage rallied 14c to 193, Commsoft put on 7c to 149, INL was up 8c at 359, and Contact and Air New Zealand A shares both rose 3c to 257 and 182 respectively, although Air NZ Bs were 2c weaker at 258.

The market had a thirst for beverage stocks yesterday - Montana gained 15c to 310, Lion Nathan rose 2c to 482 and Frucor closed 5c higher at 225.

- NZPA