NZ stocks: Telecom leads charge in resurgent market

Telecom led the charge in a resurgent sharemarket today, as turnover rose on the back of the Reserve Bank's decision to leave interest rates unchanged.

The benchmark NZSX-50 gross index jumped 22.77 points, or 0.91 per cent to a six week high of 2512.12, while the NZSX-40 capital index was up 18.91 points or 0.83 per cent to 2296.21.

ASB Securities broker Stephen Wright said the Reserve Bank's decision boosted general investor sentiment.

"For most of this week our market was pretty ordinary. Volumes were relatively low until yesterday. One of the reasons was people were holding off to see what would happen," he said .

He said an unchanged interest rate kept yield stocks attractive, while the subsequent dip in the dollar should boost export stocks.

He added initial market reaction was fairly subdued, but turnover picked up as the day went on.

" World markets were pretty weak overnight so we had to get past that first," he said.

Turnover was $92.9, million, of which Telecom accounted for $41.4 million. Of the 152 stocks traded there were 56 rises and 38 falls.

Telecom rose 13c, or 2.26 per cent, to 589c, its highest point since May 2001, despite a warning from the company today that revenues were likely to ease in 2004/2005.

Mr Wright said the company was enjoying a degree of momentum at the moment. Investors have been flocking to the stock after the company signalled it would up dividend payouts.

Investors reacted positively to ANZ's briefing on its New Zealand operations today.

ANZ rose 45c, or 2.13 per cent, to 2155c.

The bank said the integration of the National Bank, which it bought for $5.4 billion last year, was ahead of schedule, and also reaffirmed its forecast of nine per cent cash earnings per share for the 2004 financial year.

Telstra also surged today, up 14c to 542c, mainly on the back of gains across the Tasman.

The Australian government is looking to sell its 51.05 per cent stake in the telecommunications company. Northland Port fell 15c to 265c after revising its full year profit down by $750,000.

Australian price movements also helped push up Lion Nathan, which rose 25c today to 675c, after taking a 14c dive yesterday.

Other stocks on the move today included: Sky City Entertainment up 7c at 445c, Briscoes up 6c at 146c, Carter Holt Harvey down 2c at 199c, Cavalier down 5c at 497c, Fisher & Paykel Appliances up 6c at 436c, Fletcher Buildings at 5c at 422c, Tower up 2c at 150c, Tenon down 1c at 134c and Auckland International Airport up 3c at 653c.

- NZPA