Telecom recovery helps boost NZ sharemarket

File photo / NZH

The New Zealand sharemarket built on its early modest rise, boosted by reasonable gains in some stocks including a strong recovery by market leader Telecom.

The benchmark NZX-50 index closed up 13.87 points, or 0.4 per cent, at 3384.39, having ended up 6.6 points yesterday.

Telecom rose 3 per cent, or 7c, to a week high of 215. Yesterday, the stock hit 206, its lowest point since early November.

Fletcher Building fell 3c to 874, after a shareholder and member of the founding family of Australia's Crane Group urged fellow investors to reject Fletcher's takeover offer ahead of a March 11 bid deadline.

Peter Crane, a 1.5 per cent shareholder, said in a statement that the best outcome would be for investors to vote no and push for a new board at Crane.

Among other blue chips, Contact Energy rose 2c to 617, Auckland Airport was down a cent at 221, and casino company Sky City was up 5c at 330. Sky TV gained 10c to 548, while Infratil was a cent higher at 195.

Market operator NZX rose 12c, or 7 per cent, to a nine-month high of 182. The stock added to its 9c jump yesterday, when it signalled growth both in its traditional and non-traditional businesses and increases in dividends.

Children's clothing company Pumpkin Patch fell 6c to 131 as trading conditions remained tough.

The company reported a 43.5 per cent fall in half year net profit to $8.1 million, and a 10 per cent decline in revenue as lacklustre trading environment resulted in lower sales in its key Australian and New Zealand markets. The interim dividend was also cut, to 3c per share from 4.5cps a year before.

Fellow clothing retailer Hallenstein Glasson was down 3c at 360.

Restaurant Brands lost 2c to 240, Abano Healthcare fell 10c to 460 and Rakon was down 2c at 106.

The Warehouse rose a cent to 345, Mainfreight was up 6c at 814, and carpetmaker Cavalier Corp rose 6c to 343.

Dual-listed ANZ Bank was down 20c at $32.80, Westpac fell 25c to $31.55, and Telstra lost 7c to 372.

Australia's S&P/ASX 200 Index was up 1 per cent at 4832 in late afternoon trading.

Asian stocks followed US markets higher after bullish comments from investor Warren Buffett, with Japan's Nikkei share average rising 0.9 per cent.

- NZPA