KEY POINTS:
The sharemarket inched up 0.1 per cent today, gaining ground despite heavy falls for some high flying stocks.
The benchmark NZSX-50 index closed up 4.6 points at 3550.41, having fallen 29.06 points yesterday. Turnover totalled a healthy $162.6 million.
"We've mainly seen some bargain hunting come into the market for some of the stocks that have already reported their results," said Hamilton Hindin Greene partner Grant Williamson.
Fletcher Building closed up 16c at 903, having fallen 28c yesterday despite reporting a 22 per cent rise in interim profit, boosting its dividend and affirming its full year forecast.
Fletcher Building shares have plunged from a record high of 1342 in May 2007 on investor concern about the global housing market, particularly in New Zealand and the US.
Top-10 lines company Vector closed down 4c at 202, although it earlier hit a record low of 195 after reporting an 18 per cent fall in half year net profit, in line with previous guidance.
Investors were concerned about the sale of Vector's Wellington lines business and the impending refinancing of its debt.
High technology manufacturer Rakon also took a hit after lowering its forecast for the year to March, sinking to a year-and-a-half low of 279 before closing at 290, down 22c.
As well as announcing an Indian joint venture, Rakon downgraded its forecast annual earnings before interest, tax, depreciation and amortisation to $23m-$24m from previous guidance of $27m-$32m.
Also punished was Pumpkin Patch, which shed 19c to a three-and-a-half year low of 197 ahead of its half year result next Wednesday. Pumpkin Patch was trading at 479 a year ago.
"These high flying stocks trade on extremely high fundamentals, so there's not a lot of room for disappointment," Mr Williamson said.
"The market is selling (Pumpkin Patch) ahead of the result, thinking that the high dollar and difficult retail environment is going to see that company come in short of market expectations."
Top stock Telecom rose 8c to 405, Contact Energy was up 6c at 761, Auckland Airport fell 5c at 259, Fisher & Paykel Healthcare fell 7c at 280, F&P Appliances was down 13c at 262, and Sky TV rose 4c to 509.
Freightways has recovered from disappointment at a 2 per cent rise in first half profit earlier this week, rising 8c to 338.
The Warehouse was up 5c at 575, Tower rose 4c to 205, Nuplex rose 12c to 550, and Infratil was up 3c at 239.
Trustpower fell 19c to 731, Steel & Tube lost 15c to 345 after a disappointing first half profit, Ryman Healthcare was down 4c at 171, and Methven was down 8c at 157.
Lion Nathan was up 37c, or 3.6 per cent, at 1074 after a modest rise in outlook and solid quarterly performance, while AMP lost 50c, or 5.3 per cent, to 900 after a 10 per cent rise in annual profit.
Australia's S&P/ASX 200 index was up 2.4 per cent, while the Nikkei share average rose nearly 4 per cent after unexpectedly strong growth in Japan's economy.
Earlier, US stocks ended sharply higher as an unexpected rise in US retail sales during January eased recession worries.
- NZPA