Fletcher, Telstra among winners as shares gain

Allied Farmers rose 22 per cent to 13.3c yesterday, which brokers put down to bargain hunting in a market making its way back to previous highs.

Allied Farmers shares fell sharply earlier in the week when Hanover Group debenture holders started selling some of the 1.9 billion new shares issued to them in payment for Hanover assets.

"The bargain hunters have taken over that stock today with the debenture holders not doing quite so much selling," Grant Williamson, director at Hamilton Hindin Greene said. More than four million Allied Farmers shares traded yesterday.

Overall, the NZX-50 index closed up 30.38 points, or 0.96 per cent, at 3209.56, after opening slightly firmer. Turnover was worth $66 million. There were 52 rises and 18 falls among the 112 stocks traded.

"We've closed well. We are above 3200 for the first time since November 2. We've made up the small downward move with Dubai's problems but we are still not back to the peak in October," Williamson said.

Fletcher Building rose 9c to $7.90 on a day it was reported that the economy expanded for a second quarter in the September quarter with the housing and mining sectors among the strongest performers. Telecom rose 5c to $2.50 and Telstra rose 6c to $4.21.

Fisher & Paykel Healthcare rose 4c to $3.40 and brokers said it often improved when the New Zealand dollar weakened, as it did yesterday. Still, Sanford, an exporter, fell 8c to $4.70.

The Warehouse rose 3c to $4.23 after reports that shoppers are spending more than last year this Christmas season. Michael Hill rose 1c to 66c. Sky TV fell 7c to $4.98 and Steel & Tube fell 4c to $2.81. Nuplex rose 5c to $2.90. PGG Wrightson shed 4c to 58c on a day in which it posted notices of shareholder changes after its successful rights issue. Xero fell 3c to $1.58, SouthPort rose 5c to $2.70 and TrustPower fell 5c to $7.25.

NZX halted trading in Botry-Zen after the company said it had asked its bankers to call in receivers.

In New York, stocks rose as a surge in home sales indicated more stabilisation in housing and boosted optimism about the recovery. The CBOE volatility index, Wall St's favourite measure of investor fear, fell 4.6 per cent to close below 20 for the first time since August 2008.

The Dow Jones industrial average was up 50.79 points, or 0.49 per cent, to 10,464.93. The Standard & Poor's 500 was up 3.97 points, or 0.36 per cent, to 1118.02. The Nasdaq rose 15.01 points, or 0.67 per cent, to 2252.67.

- NZPA