Stocks ignore global blues to end positive

The New Zealand sharemarket shrugged off weakness in global markets and its own morning blues yesterday to end the day in the black.

Brokers said the impetus for the buying came late as traders re-weighted in anticipation of Fletcher Paper's delisting today.

Fletcher Paper has a 2.5 per cent weighting in the NZSE-40 index and will be delisted following the completion of Norske Skog's takeover.

The NZSE-40 index ended up 1.69 points at 2100.01, recovering from a session low of 2083.89.

There was solid turnover of $97.2 million with good trading in Telecom, Fletcher Energy, Forests, Carter Holt Harvey and Advantage.

Contact Energy had a rough day, dropping 11c to 276 after its chief executive, Paul Anthony, decided to quit and then the company announced that its Otahuhu B power station had to be closed because of mechanical problems. The stock fell to a low of 273.

"Surprises are never well received by the market," said Merrill Lynch broker Matthew Rose. "There will be short-term concerns."

He said it would be interesting to see the extent of input of Contact's 40 per cent owner Edison Mission in Mr Anthony's replacement.

Telecom was one to recover from negative territory and ended the day square at 721. There was good turnover worth $37 million.

Fletcher Energy also recovered to end flat at 715. UnitedNetworks lifted 16c to 288 but on light turnover after announcing it would use its gas pipelines to install a telecommunications network.

The Warehouse had a good session, rising 14c to 570, with brokers believing the company has a good story to tell.

Nufarm rose 23c to 461. Brokers said the stock was being driven out of Australia.

Sky City rose 10c to 720 on talk of more rationalisation in the Australian casino market.

Advantage Group slipped 10c to 250, although on good turnover.

- NZPA