NZ stocks: Telecom lift puts market into positive

12.30 pm

A 4c lift in Telecom's share price to 500 was mainly responsible for the sharemarket being in positive territory today.

The NZSE-40 capital index was up 4.00 points to 2077.70 on volume of $36 million at 12.30pm

Volume was boosted by 4.3 million Tranz Rail shares worth $17.7 million traded off market.

The sale was conducted by UBS Warburg, which declined to comment on the buyer or seller. The shares were sold at prices between $4.10 and $4.15. Tranz Rail rose 8 cents yesterday to $4.10 and rose another 10c today to 420.

Australian fund manager Colonial First State yesterday revealed it had become Tranz Rail's biggest shareholder with an 11.4 per cent stake after the departure of major shareholders Fay Richwhite and Wisconsin Central Transportation last month.

Telecom conducted its annual analysts' briefing yesterday and the price rise was the result of the positive reception to that event, brokers said.

Metlifecare rose 10c to 150 after the retirement home operator reported a $7.2 million profit for the year to December 31.

The result, a strong improvement on last year's $474,000 profit, was buoyed by cost cuts and increased profit margins.

No dividend was declared.

Ports of Tauranga continued its good run, rising 10c to 795 while meat company Richmond fell 4c to 226. Lion Nathan fell 5c to 560 while Wakefield rose 5c to 150.

Rocom plunged 5 cents, or 15.6 per cent, to 27 cents in early trade as investors digested its poor result. Losses at the telecommunications company swelled to a net $4.17 million in the full year to December 31.

In all, there were 35 rises and 34 falls among the 112 stocks traded.

- NZPA