NZ stocks: Telecom spurs market out of losing streak

6.30pm

The New Zealand sharemarket today shrugged off its recent string of lacklustre performances to finish on a Telecom-driven positive note, a broker said.

At 5pm, the benchmark NZSX-50 was up 22.26 points at 2453.64, while the NZSX-40 capital index was up 19.40 points at 2267.30.

Both indices had previously finished down for seven consecutive sessions, having last traded higher on January 29.

Today, there was $103.8 million worth of shares traded, of which Telecom accounted for $61 million worth.

Telecom shares closed up 10c at 565 after earlier nudging 571 in the session, their highest since June 2001. The surge in the telco's share price followed confirmation of its second quarter $365 million net profit late last week.

Greenslades broker Paul Valk said the surge in Telecom shares had pulled the sharemarket out of the doldrums. The company's solid performance and improved dividend forecast had attracted investors.

"I think it's pretty fair value for their (Telecom's) shares," he told NZPA, noting the local market had also followed the positive lead of the United States-based Dow Jones industrial index.

Meanwhile, Telecom today announced a much more attractive residential broadband internet scheme.

Courier company Freightways today posted a December half net profit of $8.49 million, its maiden result since listing last year. Its shares closed up 7c at 239.

Brewer Lion Nathan today reconfirmed its net profit after tax forecast of between A$195 million ($219 million) and A$200 million for the 2004 year.
The Australia-based company said wine and beer sales had improved over the December quarter. Lion Nathan shares closed up 5c at 680.

In other market news, New Zealand's number two and three stocks, respectively, Contact Energy and Carter Holt Harvey (CHH) also contributed to the positive tone.

CHH was up 3c at 192, while Contact was up 3c at 526 on minor volume.

Other stocks on the move included: Auckland International Airport up 9c at 670, AMP up 11c at 493, Fisher & Paykel Healthcare up 14c at 1245, Ports of Tauranga up 10c at 445, The Warehouse up 2c at 510, Cavalier down 5c at 510, Ports of Auckland down 10c at 760, Infratil down 3c at 270 and ANZ Bank down 15c at 1980.

There was $36,650 worth of trading on the New Zealand Alternative Exchange today.

- NZPA