NZ market posts modest gains

The New Zealand sharemarket posted modest gains in mixed trading today with bargain hunters emerging in so-called situation stocks.

The benchmark NZSX-50 index closed up 5.669 points, or 0.18 per cent, at 3161.062 after initially trading lower.

Turnover was worth $103.97 million. There were 46 rises and 35 falls among the 109 stocks traded.

"Offshore markets didn't really give clear direction to the market," said Grant Williamson, director at Hamilton, Hindin, Greene.

Fletcher Building gave up some of its recent strong gains to end down 10c at 835, but Telecom recovered recent weakness to end up 3c at 266.

There was a line of 100,000 shares traded in SouthPort at 300 and the rarely traded stock ended up 48 at 298.

Pyne Gould Corporation rose 8c to 58 after plunging this week as existing shareholders who couldn't afford to take up their entitlement to the company's right issue sold.

"It was sold down aggressively yesterday but was a little over done and we are seeing some bargain hunters coming in," Mr Williamson said.

Fisher and Paykel Appliances was unchanged at 69 after confirming its bank syndicate had granted a waiver for a bank covenant.

Port of Tauranga rose 14c to 678, Fisher and Paykel Healthcare rose 6c to 328 and Property for Industry rose 2c to 119.

SkyTV rose 6c to 474 on a day TVNZ reported an 89 per cent plunge in profit. GPG rose 1c to 87.

NZOG rose 1c to 163 as Pan Pacific Petroleum, a company it has a stake in, announced an involvement in an exploration project in the Timor Sea.

SkyCity fell 4c to 325, Infratil fell 1c to 168 and Auckland Airport fell 1c to 186.

Westpac fell 70c to 3180 and ANZ fell 55 to 2965.

Steel and Tube fell 7c to 305 and Michael Hill fell 2c to 70.

Contact fell 5c to 576.

US stocks started higher but then turned lower as the Conference Board's Consumer Confidence Index for September fell, underscoring concerns about personal finances amid the worst job market in 26 years.

Even so, investors were reluctant to sell, and trading shifted between small losses and break-even for most of the session following Monday's rally when the S&P 500 index rebounded to snap a three-day losing streak.

"You had a bit of mixed economic data and the market is a little bit mixed too," said Cleveland Rueckert, market analyst at Birinyi Associates Inc in Stamford, Connecticut.

The Dow Jones industrial average dropped 47.16 points, or 0.48 per cent, to 9742.20. The Standard & Poor's 500 Index shed 2.37 points, or 0.22 per cent, to 1060.61. The Nasdaq Composite Index dipped 6.70 points, or 0.31 per cent, to 2124.04.

- NZPA