Fletcher Building propels NZ sharemarket higher again

File photo / NZH

Fletcher Building shares continued to drive the New Zealand sharemarket higher today even though the building firm issued a profit warning.

The benchmark NZX-50 index closed up 20.798 points, or 0.612 per cent, at 3418.106. The index is at its highest level since August 2008.

Fletcher Building closed up 10c, or 1.15 per cent, at 881 and traded as high as 894, a level not seen since April 2008.

Fletcher Building today confirmed that it will be included in the S&P/ASX 200 and S&P/ASX 300 indices from March 18, but also said the Christchurch earthquake would knock $14 million to $24 million off its previously forecast full year net earnings.

"Fletcher Building has been the top performing blue chip stock all week. It is getting a lot of investor attention," said Ross Cuthbert, adviser at Craigs Investment Partners.

He said the stock quickly recovered after shedding a 16 cent dividend this week and it was up today even after issuing a profit warning.

"Investors are taking a longer term view. Longer term, they will have a lot more work obviously. I don't think anyone wants to profit from a bad event like an earthquake, but the reality is there is a lot of work to do and Fletcher will do a lot of it because it is the country's main construction company," he said.

Telecom closed up 2c at 216, and Contact Energy was unchanged on 608.

Ebos rose 3c to 743, Scott Technology rose 6c to 132 and Mainfreight rose 7c to 812. Hallenstein Glasson rose 8c to 358 and Infratil rose 2c to 198.

Goodman Property fell 1c to 82, OceanaGold fell 9c to 342. Rakon fell 2c to 108 and Ryman fell 1c to 237.

TrustPower fell 2c to 712 and Vector fell 2c to 243. Nuplex fell 3c to 336, Skellerup fell 2c to 126 and Xero fell a cent to 251.

In the US, investors were betting upcoming payrolls data would show a big gain in jobs, pushing Wall Street to its best one-day rally in three months, but weak volume lingered.

As oil paused from its recent climb, the market's focus shifted to stronger-than-expected economic data a day before the February US employment report.

The Dow Jones industrial average was up 1.6 per cent at 12,258.20, the Standard & Poor's 500 Index gained 1.7 per cent to 1330.97, and the Nasdaq Composite Index gained 1.8 per cent to 2798.74.

- NZPA