KEY POINTS:
The New Zealand sharemarket halted a six-day losing streak, despite being faced with the prospect of high interest rates for the foreseeable future from a hawkish Reserve Bank.
After earlier hitting a three-and-a-half month low, Stephen Wright of ASB Securities said the market struggled higher in exceptionally quiet trading.
The benchmark NZSX-50 index closed up 8.95 points, or 0.2 per cent, at 4043.50 on turnover totalling $85.9 million. The index has fallen in the six previous trading days, and was earlier down 20 points today.
While leaving rates at 8.25 per cent, Reserve Bank Governor Alan Bollard indicated inflation problems were significantly worse than previously signalled, raising the prospect of higher interest rates for longer.
"A hawkish outlook for interest rates doesn't help," Mr Wright said.
In contrast, the RBNZ's stance pushed the New Zealand dollar higher today.
Leading the market higher was network company Vector, which surged 3.8 per cent, or 9c, to 245. Vector is slowly recovering from its recent year-low.
Top stock Telecom lost ground at the end of the session, falling 2c to 431, second-ranked Fletcher Building was unchanged at 1140, and Contact Energy rose 18c to 864.
Auckland Airport reversed early weakness, closing up 3c at 282 after the Canada Pension Plan Investment Board (CPPIB) altered its bid to increase the proportion of shares, and decrease the convertible notes component.
"The terms were just more attractive, and of course we're coming closer to the (offer) documents being sent out," Mr Wright said.
Fisher & Paykel Appliances was down 5c at 334, F&P Healthcare fell 7c to 318, and Sky TV rose 7c to 563.
Sky City was flat at 485, having fallen 10c yesterday as it announced its only interested party was not ready to make a takeover bid yet but hoped to soon.
The Warehouse was up 4c at 654, Port of Tauranga rose 6c to 680, NZX was up 5c at 930, Hallenstein Glasson rose 5c to 385, and Freightways gained 5c to 380.
Trustpower fell 7c to 835, Nuplex lost 11c to 690, Air New Zealand was down a cent at 179, Mainfreight fell 5c to 710 and Guinness Peat Group was down 3c at 179.
Abano Healthcare closed steady at 505, having gained 17c yesterday as a second interested party emerged in the dental, audiology and radiology group.
Among dual-listed stocks, ANZ was down 40c at 3175, Westpac fell 20c to 3230, AMP lost 9c to 1176, but Lion Nathan rose 8c to 1073.
- NZPA