NZ stocks: Weaker dollar attracts offshore investors to Telecom shares

A weaker New Zealand dollar today encouraged offshore investors to snap up shares in market leader Telecom and help push the sharemarket higher, a broker said.

At 5pm, the benchmark NZSX-50 index was up 28.47 points at 2468.87, while the NZSX-40 capital index was up 26.84 points at 2297.60.

Both indices were slightly below the string of highs they have posted since January 1.

There was $108.6 million worth of shares traded on volume of 35.7 million.

Among the 148 stocks traded were 51 rises and 53 falls.

ABN Amro Craigs broker Matt Willis said the weaker New Zealand dollar, which today closed at US67.71c, had encouraged offshore investors to buy Telecom shares.

At New Zealand Exchange's close, Telecom was up 21c at 545 having traded $61.1 million worth on volume of 11.4 million.

The move higher follows a series of sessions earlier this week, which saw profit taking on Telecom shares, forcing their price down.

"There was quite an amazing weight of buying in Telecom today. It was a reversal of what we saw earlier," Mr Willis told NZPA today.

In other market news, Baycorp Advantage was up 10c at 325 as investors speculated on its profit result, due in February.

"I think the market has a view to, perhaps, Baycorp returning to double-digit growth trends of the late 1990s," Mr Willis said.

Sky City was down 3c at 455 after it confirmed it was in talks to buy the MGM Mirage casino in Darwin, Australia.

The stock fell 9c yesterday as the market got wind of the deal which brokers estimate could cost up to $200 million.

NZ Refining, likely to be the beneficiary of rising world refined petrol prices and improved margins, added to yesterday's 50c gain with another 21 cents today to 1611.

Other shares on the move today included: AMP up 5c at 557, Auckland International Airport down 9c at 679, Carter Holt Harvey up 3c at 195, Dorchester up 4c at 240, Lion Nathan up 10c at 690, Ports of Auckland down 10c at 770, Promina down 8c at 374, and The Warehouse up 7c at 532.

There was $27,096 worth of shares traded on the New Zealand Alternative Exchange today.

Overseas, the Dow Jones closed up 111.91 points at 10,538.29, the Standard & Poor's 500 Index closed up 9.30 points at 1130.52, and the Nasdaq Composite Index closed up 14.69 points at 2111.13.

- NZPA