NZ stocks: Telecom leads charge as dollar climbs

The New Zealand sharemarket closed on a positive note yesterday, as the kiwi dollar continued to move from strength to strength.

"In general, the market was stronger across the board, up 21 points on reasonable volume. I think the market might be taking comfort from a stronger kiwi dollar against the US," James Lock, of Craig and Co, said. "It has created a bit of optimism."

The NZSE-40 capital index closed up 21.26 points, or 1.10 per cent, at 1952.27, as the kiwi continued its ascent toward 43USc. Mr Lock said the upturn in the kiwi appeared to have enticed overseas investors back into the market.

"I think there is a bit of offshore interest creeping into the market. Some of the orders are a bit chunkier on the buy side, indicating there is a bit of offshore interest," he said.

Market turnover was 90.83 million shares, worth $125.97 million, and of the 142 stocks traded, 56 rose and 35 fell.

Telecom led the charge, up 12c at $5.64 on turnover of 3.83 million shares valued at $21.61 million.

AMP rose 10c to $24.35, Auckland Airport was 5c higher at $2.98, Baycorp rose 15c to $11.10, Telstra gained 10c to $8.15 and Sky TV was 14c higher at $2.80.

Market newcomer Powerco also closed up 4c at $1.35 after Infratil announced it had sold 6.11 million of its 10.93 million shares in the company at between $1.30 and $1.35 a share. Infratil closed down 2c at $1.22.

Tower was up 3c at $4.85 after its annual result, and Brierley gained a cent to 33c on its Sealord deal.

Air NZ A shares closed 4c higher at $1.45 and the B shares picked up 8c to $1.98. Air New Zealand-owned Ansett Australia has increased its offer for Australia's Hazelton Airlines, boosting its 90Acps to $A1.35cps.

Air NZ said that Ansett Australia had also extended the acceptance deadline to January 13 from December 14.

Fletcher Energy bucked the positive trend, closing down 7c at $8.38, as the higher kiwi dollar continued to affect the price of its deal - in US dollars - with Shell.

DB Group was also 10c lower at $5.10 after Monday's capital restructuring programme in which shareholders received one share for every two they held plus $3 cash.

Fletcher Building rose 5c to 188 and the Fletcher Forest rights, which stop trading today, were unchanged at 0.1c.

- NZPA