NZ stocks: Telecom props up market

12.00pm

Market juggernaut Telecom pushed the benchmark share index into the positive in morning business today.

Telecom rose 3c to 509 in line with US stocks, which had a positive session.

At 11.35am the NZSX-50 gross index was up 2.13 points at 2330.84 and was just about 15 points off its high. The NZSX-40 capital index was up 3.69 points at 2218.00.

There was light volume worth only $20 million and Telecom dominated with $7 million of that.

Australian teleco Telstra rose 7c to 557.

US stocks rallied as expectations of upbeat economic data and a stronger US dollar fueled buying after two straight weeks of declines.

The Dow Jones industrial average closed up 120 points, or 1.24 per cent, at 9748. The Standard & Poor's 500 Index closed up 17 points, or 1.62 per cent, at 1052. The technology-focused Nasdaq Composite Index closed up 53 points, or 2.81 per cent, at 1947.

On the local scene, Wrightson initally fell 14 per cent, or 21c, to 125 in response to a profit warning issued yesterday. However, it later recovered to 131, down 15c. The rural servicing company warned difficult trading conditions would affect its first half performance.

The company said its group earnings before interest and tax (ebit) were likely to be around 20 per cent lower for the six months to December than the same period last year. In October, Wrightson said its ebit was running 10 per cent behind the previous year.

Restaurant Brands, which last week shed 11 per cent following a warning of a sales slump at its KFC franchise chain, sank another 5c today to $1.05 -- its lowest price in over two years.

Hellaby rose 4c to 469, while Mooring Systems gained 6c to 179 on light volume.

Ryman rose 4c to 206 after the retirement home company yesterday posted record half year profits and said it was expecting the same again in the second half as the ageing population pushes up demand for its services.

Mooring Systems rose 6c to 179.

Air New Zealand gained 2c to 46 despite getting nothing out of its dispute with Wellington Airport. It dropped its court case due to start today and ended up paying $15 million in back charges and getting no concessions on future fees.

Others to rise included; Westpac NZ, 20c to 1745, Pacific Retail, 5c to 240, and Baycorp Advantage, 3c to 290.

In all there were 26 rises and 27 falls among the 119 stocks traded.

- NZPA