NZ Stocks:Shares firm thanks to Wall St and Telecom

12.00pm

The sharemarket firmed a tad today thanks to positive influences from Wall Street and market gorilla Telecom.

Telecom, which comprises 28 per cent of the top 50 index and yesterday fell to its lowest level in nearly two months at 500c, was today up 2c to 507.

Turnover was light and Telecom trading made up $8.5 million of the market's $21 million turnover by 11.35am.

The benchmark NZSX-50 gross index was up 0.37 points to 2135.66 while the NZSX-40 capital index was up 1.42 points at 2077.60.

The influence from the United States was also positive. Stocks ended higher after robust profits from banking heavyweights Citigroup Inc and Bank of America Corp renewed Wall Street's optimism that this week's deluge of earnings reports will show corporate America is recovering from an economic downturn.

The Dow Jones industrial average ended up 57.56 points, or 0.63 per cent, at 9177.15; the broader Standard & Poor's 500 Index rose 5.72 points, or 0.57 per cent, to 1003.86 and the high tech-dominated Nasdaq Composite Index added 20.91 points, or 1.21 per cent, to 1754.84, its highest close since April 22, 2002.

There were no moves of significance on the local market.

Trustpower rose 5c to 490, Fisher and Paykel Healthcare fell 5c to 1145 and NZX, in which broker Forsyth Barr revealed an 8 per cent stake yesterday, gained 1c to 475 after early weakness had seen it fall 3c.

Tower rights, on their second day of trading, eased 0.8c to 29.2c while the head shares were steady on 121.

Tranz Rail stock continued to push above Toll's 95c takeover offer price, rising another 1c to 99. An attempt is reported to be under way to broker an understanding between the Government and fund managers, who argue they are not getting the benefits of a deal agreed last week between Toll and the Government.

Carter Holt Harvey, which is expected tomorrow to report a second quarter after tax net profit of $42 million against $56 million a year ago, was down 2c at 165.

Twenty-nine stocks were down and 26 up among the 103 stocks traded.

- NZPA