NZ stocks: Telecom leads NZ shares higher

The New Zealand sharemarket took a brief breather on opening before heading higher today, building on yesterday's 15 month high.

At 11.30am the NZSX-50 gross index was 5 points or 0.23 per cent higher at 2245.12, while the NZSX-40 capital index was 1.2 points or 0.06 per cent higher at 2156.81. Turnover was $32 million.

The indices were led upward by market leader Telecom which by midday had risen 6c to 517.

"A bit of new buying has come in there today", said ABN Amro Craigs Equities retail advisor Bryon Burke.

The Commerce Commission is to announce a draft determination today on whether Telecom must open its local loop or copper wire network to competitors. The decision has implications for both Telecom and its major land-line competitor TelstraClear. TelstraClear shares were a cent higher at 563 by midday.

Mr Burke said the markets recent highs had been achieved on fairly modest volumes.

"It's a case of there's not enough sellers in the market. The current spate of takeovers and capital returns means that people don't have to take profits as much as they normally would".

Fletcher Forests shares were unchanged this morning on 124 after rising 3c yesterday on news of a second bid for the company's extensive forest estate.

Ports of Auckland climbed 10c to 801 after announcing this morning that its August container rose 4 per cent on the previous month.

On overseas markets US stocks hovered near the unchanged mark yesterday, leading UK shares closed lower, and Japan's Nikkei stock average rose one per cent to hit a 15-month closing high.

Stocks to move in morning trade by 11.30am on the local market included: Air NZ down 2c to 52, Auckland International Airport down 5c to 660, BayCorp Advantage up 4c to 266, Contact Energy up a cent to 478, Dorchester Pacific Group up 2c to 210, Fisher & Paykel Healthcare up 7c to 1252, Fletcher Building up 3c to 413, Independent Newspapers Ltd up a cent to 452, Infratil up 2c to 225, Promina Group up a cent to 336, Sky City down 3c to 874, Tourism Holdings Ltd up 3c to 140, Tower up a cent to 121, TrustPower down 8c to 487, Turners Auction down 4c to 386 .

Rises outnumbered falls 29 to 18 on 110 stocks traded by 11.30am.

- NZPA