NZ stocks:Telecom edges ahead

Leading stock Telecom continued to edge ahead on good volume in a steady-as-she-goes market ahead of the Reserve Bank of New Zealand's interest rate decision tomorrow.

The benchmark NZSX-50 index rose 13.27 points, or 0.494 per cent, to 2699.713. Turnover was worth $162 million. There were 36 rises and 37 falls among the 114 stocks traded.

Telecom gained 1c to 272, but traded as high at 280. Volume in the stock was worth $42m.

"Telecom is finding its feet," said Nigel Scott of ABN Amro Craigs. The company is benefiting from changes in portfolios in Australia.

"There has been some Australian buying," he said.

The market is marking time ahead of the interest rate decision tomorrow.

Investors were also continuing to monitor the swine flu story developments.

When the market rises it tends to be leader-driven.

Today, Fletcher Building was unchanged at 638, but Contact Energy gained 23c to 578.

Dual-listed bank ANZ fell 165 to 1975 after releasing a mixed interim profit that disappointed investors and Westpac fell 110 to 2400.

New Zealand Farming Systems Uruguay was down 8c at 60.

Tourism stocks were mixed as international travellers were monitored more for flu. Air NZ eased 2c to 107 and Auckland Airport eased a cent to 165 but Tourism Holdings rose 3c to 50.

Freightways rose 8c to 280, SkyTV rose 8c to 416 and Fisher & Paykel Healthcare rose 4c to 305.

NZX rose 8c to 690 and The Warehouse rose 2c to 350. Steel & Tube rose 13c to 278. Xero rose 6c to 120.

US stocks fell on Tuesday as fresh worries that major banks may need to raise more money offset more reassuring economic data.

Worries also lingered over the economic impact from the threat of a flu pandemic.

Although Wall Street closed out the session in negative territory, the major indexes recovered from their session lows, when they slid more than 1 per cent.

The Dow Jones industrial average slipped 8.05 points, or 0.10 per cent, to 8016.95. The Standard & Poor's 500 Index dropped 2.35 points, or 0.27 per cent, to 855.16. The Nasdaq Composite Index declined 5.60 points, or 0.33 per cent, to 1673.81.

- NZPA