Telecom benefit to index

WELLINGTON - Telecom, the sharemarket's story of the week, finished with a flourish to pull the main index higher yesterday.

"Certainly the week has belonged to Telecom, with a 30c rise on Friday being the bulk of the day's index gain," Frater William's Brendon Haworth said.

The NZSE-40 put on 72 points to 2071.44 this week, largely reflecting Telecom's 82c rise.

Telecom, which this week built a 5.7 per cent stake in Independent Newspapers - with an eye on its content and links with the half-owned Sky TV - added 9 per cent to its share price since close of business last week, closing yesterday up 30c at 950.

The market did not view Independent News so favourably. It shed 15c to 415, but brokers say support should emerge for the sought-after stock. Sky TV firmed 5c to 455.

The Commerce Commission plans to look at Telecom's new investment. However, the small size of the INL stake Telecom bought meant the competition was unlikely to be affected.

The commission would review its previous rulings on Telecom's earlier attempts to buy into Sky TV, which is 49 per cent-owned by INL.

* TeamTalk gained Commerce Commission approval yesterday to acquire Telecom's mobile radio business. However, it has yet to negotiate with Telecom.

- NZPA