NZ stocks: Market climbs slightly

Investors pondered the economic impact of the swine flu outbreak, selling airline and tourism stocks and buying makers of pork substitutes and health products.

The benchmark NZSX-50 index closed up 7.987 points, or 0.301 per cent, at 2664.372 but the talk was about a 2 per cent fall in S&P futures in Asia, which indicates a decline on Wall Street.

The swine flu outbreak has spread beyond Mexico, possibly including New Zealand, but authorities say it is too early to say if it is a pandemic.

Australia tightened its border controls today.

"I think it has impacted sentiment and it has impacted price," said Robert Bode, head of Research at First NZ Capital.

"People have a vivid recollection of the Sars a few years ago, albeit that it didn't last long and it proved to be a buying opportunity," he said.

Stephen Wright at ASB Securities said Air New Zealand was suffering from lower passenger numbers but the swine flu story had a hand in its performance today.

Still, considering the extensive coverage of the story there had not been that much impact in the New Zealand market, he said.

Air NZ eased 3c to 108. Auckland Airport ended unchanged at 167 but traded as low as 165. Tourism Holdings was unchanged at 45.

Overall turnover was worth $66.73 million. There were 37 rises and 27 falls among the 103 stocks traded.

In Australia, Biota, which receives a royalty from sales of flu drug Relenz, soared 72 per cent.

In New Zealand, brokers said the 20c rise to 570 in Sanford and 5c rise to 125 in PGG Wrightson may be because their food products were a substitute to pork.

Though Wrightson was also benefiting from a settlement of a dispute over a failed deal with Silver Fern Farms on Friday.

Fisher & Paykel Healthcare, which makes respiratory aides, eased 1c to 295.

The big mover today was Lion Nathan, up 40c to 1460, as the price at which Kirin will buy shares it does not own already at was revealed at A$12.22 ($15.67) a share.

Among the leaders, Fletcher Building fell 8c to 624, Telecom rose 4c to 263 and Contact rose 2c to 560. Telecom has bought a network announcement forward.

NZX rose 15c to 675 after lifting its first quarter net profit 40 per cent from a year earlier to $3.04.

The Warehouse rose 8c to 349, Freightways rose 2c to 272 and Tower rose 1c to 132. Methven fell 10c to 102 and Pike River Coal fell 4c to 75. NZOG fell 2c to 137.

In the United States, stocks rallied on Friday (local time) as earnings showed companies have weathered the recession and economic data raised hopes the economic cycle may have hit a bottom.

The Dow Jones industrial average added 1.5 per cent to 8076.29, the Standard & Poor's 500 Index rose 1.7 per cent to 866.23, and the Nasdaq Composite Index gained 2.6 per cent to 1694.29.

For the week, the Dow fell 0.7 per cent and the S&P slid 0.4 per cent, while the Nasdaq rose 1.3 per cent.

- NZPA