NZ stocks: Fletcher, Contact boost market

Strong gains by market leaders Fletcher Building and Contact Energy helped jolt the New Zealand share market to life today.

The 20c rise to 698 in Fletcher Building was attributed to news that highly regarded former chief executive Ralph Waters is to chair the board from March next year.

Also news that Australia avoided a technical recession in March helped as Fletcher Building has assets on both sides of the Tasman.

Contact Energy rose 22c rise to 600.

The benchmark NZSX-50 index closed up 33.427 points, or 1.191 per cent, at 2840.627. Turnover was worth $116.2 million. There were 50 rises and 26 falls among the 114 stocks traded.

"Our market, in particular Fletcher Building, has had a very good day," said Grant Williamson, director at Hamilton, Hindin, Greene.

"Asian markets have done quite nicely today and we've gone up on that," he said.

The market had seen the board changes at Fletcher Building as positive news, he said. Two new board members were also announced today. About $34.7m worth of Fletcher Building shares traded today.

Restaurant Brands rose 1c to 96 after the company reported total sales across its three brands for the first quarter - the 12 weeks to May 25 - were up 4.3 per cent on the equivalent period last year.

The Warehouse rose 6c to 375 and Hellaby 3c to 77.

Telecom dropped 3c to 259.

Tourism Holdings rose 1c to 500, Air NZ 1c to 106 and Auckland Airport 3c to 165.

Freightways fell 2c to 295 while Mainfreight rose 1c to 446.

Fisher & Paykel Healthcare rose 9c to 303 and the appliances stock eased 4c to 111.

Rakon rose 6c to 152.

NZX eased 15c to 770 and Steel & Tube eased 7c to 292.

Lion Nathan rose 15c to 1470.

US stocks rose for a fourth straight day on Tuesday as an upbeat report on home sales bolstered hopes for an economic recovery as well as shares in construction companies.

But a sell-off in financials on worries about the dilutive impact of recent stock offerings limited a broader advance.

Shares of big manufacturers also rose, with plane maker Boeing Co gaining 3.1 per cent and ranking among the Dow's major advancers. Exxon Mobil Corp, 3M Co, Coca-Cola and Alcoa Inc also bolstered the blue-chip average.

The Dow Jones industrial average added 19.43 points, or 0.22 per cent, to 8740.87. The Standard & Poor's 500 Indexgained 1.87 points, or 0.20 per cent, to 944.74. The Nasdaq Composite Index rose 8.12 points, or 0.44 per cent, to 1836.80.

- NZPA