Rise in Telecom shares helps turn market around

File photo / NZ Herald

A 5c rise in the price of Telecom helped turn the New Zealand sharemarket around yesterday after it fell in early trading.

The benchmark NZX-50 index closed up 6.14 points, or 0.19 per cent, at 3270.38 after opening down 5.94 points after the United States market eased in its Friday session.

Telecom closed on a session high of $2.21, up 5c, or 2.31 per cent, on good volume. Investors continue to wait for announcements on the Government's broadband plans.

Fletcher Building was down 9c at $7.95, while Contact Energy was unchanged at $5.93.

Pike River Coal shares remained suspended but the company updated the market with information that had been released at press conferences. The shares of major shareholder NZOG were unchanged at 92c. "It has given up pretty much all the value that was in the share price for its investments in Pike and is valued at the level of their other projects," said Grant Williamson, of Hamilton, Hindin, Greene.

He said the market was weak for most of the day.

Charlie's Group eased 0.8c to 18c after founders of the beverage company sold down part of their stakes at 18c to institutions and private investors. Charlie's has been a turn-around story lately and it was good for them to get some institutions on board, Williamson said.

Methven fell 5c to $1.58 after reporting its interim result. The company talked about difficult conditions but maintained its dividend.

The lights may have gone out on Auckland Airport's runway at the weekend but the share price rose a cent to $2.09. Airways Corporation has fixed the cabling fault that saw runway lights fail.

Ebos rose 10c to $7.50, Fisher & Paykel Healthcare rose 3c to $2.93 and Ryman Healthcare was unchanged at $2.19.

ANZ rose 29c to $29.24 and Westpac rose 49c to $27.49. Air NZ rose 4c to $1.38.

In the US, last week ended with commodity-related shares leading stocks lower in a shortened post-holiday session as investors unloaded risky assets on worries that euro-zone debt problems may spread.

The Dow Jones industrial average dropped 0.9 per cent to end at 11,092, the Standard & Poor's 500 slipped 0.8 per cent to 1189.40, and the Nasdaq Composite, 0.3 per cent to 2534.56.

- NZPA