NZ stocks: Telecom leads sharemarket to fresh high

7.25pm - by ADAM BENNETT


The New Zealand sharemarket's leading indices closed on fresh highs today as leading local stocks saw good domestic and overseas demand.

The NZSX-50 gross index ended today's session 16.54 points or 0.67 per cent higher at 2496.30, while the NZSX-40 capital index ended 12.63 points or 0.55 per cent higher at 2320.46.

Turnover was a healthy $87.52 million, despite today's public holiday in Wellington to celebrate the region's anniversary. Stocks to rise outnumbered those falling 62 to 31 on 146 traded.

ASB Securities' broker Stephen Wright said it was "generally speaking a good market" today, with "pretty reasonable volume, and good support from offshore for the likes of Telecom".

Telecom gained 8c to finish at 560.

Goldman Sachs JB Were institutional advisor Humphrey Sherratt said the firm day's trade was "certainly led by Telecom, which continues to go from strength to strength".

Although he said there was no news about the telco, the market continued to focus on the likelihood of the company announcing a long-awaited dividend increase at its quarterly result in February. Telecom shares remained the subject of some "pretty reasonable offshore interest", he said.

Mr Sherratt said wood processor Carter Holt Harvey was continuing to move ahead. Today the company's shares finished 5c higher at 202.

He said the market was still hopeful the company would make a capital payment should it strike a favourable deal for the sale of its tissue business. The market had also noted plans by US producers to increase pulp prices, which would in turn be positive for Carter Holt.

ASB Securities' Mr Wright said Fisher and Paykel Healthcare was still enjoying positive sentiment from investors after announcing on Friday it had signed an agreement to become a primary supplier to the largest provider of home healthcare services in the United States, Apria Healthcare Group Inc.

Fisher and Paykel Healthcare added 13c to finish at 1238. Sister stock Fisher and Paykel Appliances, which has a substantial holding in Healthcare also benefited, adding 5c to 375.

Blis Technologies was up a cent to 19 after announcing a successful anti-halitosis test of its K12 Throat Guard.

Mr Wright said there were some holes in today's session.

Auckland International Airport continued to drift down, after starting the day promisingly.

By close of trade the stock was 3c lower at 675. A report that the airport may extend its facilities to cater to more traffic from Virgin Blue failed to give it any impetus.

Electricity retailer and generator TrustPower was down 10c after announcing the conditions of its resource consents for its Waipori Otago hydro scheme had been confirmed.

Mr Sherratt expected a subdued local session tomorrow as US markets remained closed today for the Martin Luther King Day public holiday.

Meanwhile, stocks to move up today included: Fletcher Building up 4c to 408, Mainfreight up 4c to 178, Pacific Retail Group up 3c to 235, Ports of Auckland up 4c to 780, Promina up 8c to 376, Sanford up 5c to 525 and Waste Management up 7c to 423.

Stocks to fall included: AMP down 10c to 545, Baycorp Advantage down 6c to 326, Cavalier Corp down 8c to 535, Michael Hill down 5c to 492, NZX down 10c to 610, meat processor Richmond down 34c to 246, and Tower Group down 3c to 134.

- NZPA