NZ stocks: Buoyant sharemarket at 8-week high

A buoyant sharemarket closed at an eight-week high today, pushed up by market heavyweights Telecom and Carter Holt Harvey.

The benchmark NZX-50 gross index was up 18.16 points at 2656.26, while the NZX-All capital index was up 4.87 points at 889.86.

Total market turnover was worth $143.7 million, $91.5 million of which was accounted for by turnover in Telecom.

Telecom rose 6c today to 574. ABN Amro Craig's Matt Willis said the stock could have re-rated today on the back of Telstra's announcement yesterday it planned to return an extra A$1.5 billion ($1.7 billion) to its shareholders each year for the next three years.

"Perhaps investors are focusing on the potential for Telecom to also initiate some capital management. That is a distinct possibility. We are certainly of the view that they will have the ability to pay a special div some time in the 2005 financial year," he said.

Telstra was unchanged at 548 today, after rising 22c yesterday.

Bucking the upward trend was Auckland International Airport, which fell 9c to 656.

Mr Willis said the fall was a knee-jerk reaction to yesterday's news that a new commercial airport at Whenuapai was a step closer after receiving the green light by a regional council study.

Waitakere City Council, in partnership with Infratil, is promoting the idea of a new commercial airport at Whenuapai when the Air Force moves out by 2007.

Infratil rose 11c to 301 today.

Wrightson was down 1c at 153. According to a substantial shareholder notices filed with the stock exchange this afternoon, Rural Portfolio Investments (RPI) has received acceptances for 50.09 per cent of Wrightson's shares. RPI's bid, at $1.65 per share for 50.01 per cent of Wrightson, closes tomorrow.

Of the 146 stocks on the move today, there were 39 rises and 46 falls.

Movers included Contact Energy rose 7c to 591, F&P Appliances fell 4c to 451, Lion Nathan down 10c at 730, Fletcher Building up 5c at 450, The Warehouse up 3c at 429, Promina up 6c at 448, Turners Auction up 5c at 520, and TrustPower down 2c at 445.

- NZPA