NZ stocks: Corporate activity pushes market to fresh high

6.00pm

Corporate activity provided the New Zealand sharemarket with the impetus to push to a fresh high today.

The benchmark NZSX 50 gross index rose 19.02 points or 0.89 per cent to 2140.514 while the NZSX 40 capital index rose 7.47 points or 0.36 per cent to 2090.26.

MacQuarie Equities Broker Barry Johnson told NZPA today the New Zealand market had performed "pretty well of late".

"It's often been driven by corporate action or people looking for yield and there are a few stocks out there that have been paying pretty attractive sorts of dividends, and as interest rates fall, people are looking around for the income type stocks and they've done pretty well," he said.

On the local market which tends to be dominated by trading in Telecom, Mr Johnson said Fletcher Forests "has probably had as big an impact as anything.

Fletcher Forest said today it was planning to sell its entire 100,000 ha forest estate block to one party or a consortium .

The announcement saw the company's stock rise 10c to 110.

Mr Johnson said Fletcher Forests' shareholders were looking forward to the company unlocking some of its value.

"They (Fletcher Forests shares) have been trading at a discount to their NTA (net tangible assets) for some time, so I guess people are looking forward to the market trading value better reflecting underlying assets."

Mr Johnson said the rally on Fletcher Forests' shares had reflected on 20 per cent shareholder Rubicon which was up 5c to 73 by the end of trading today.

Meanwhile a fresh profit warning by Tranz Rail today failed to dent the trouble rail operators share price. Tranz Rail closed 1c up at 90. Tranz Rail's share price has been buoyed in recent weeks as Australian transport and infrastructure company Toll Holdings has vied, first with US company Rail America, and then with the Government for control of the company.

Toll raised its bid to 95c per share on Friday and indicated it go even high.

Elsewhere on the market Sky City had a good day, rising 21c to 906.

"I think everyone was concerned about Sars and smoking regulations for a while, that was hanging over the stock, but those two things seem to have moved out of focus a little bit," Mr Johnson said.

Fisher & Paykel Appliances went ex-dividend today which saw it fall 31c to 1275, while Fisher & Paykel Healthcare lost 25c to finish at 1175.

WestpacTrust Investment also went ex dividend today and lost 31c to finish at 1759.

Total turnover on the market today was 32.6 million shares with a value of $71.1 million. Market kingpin Telecom as usual topped turnover with 4.5 million shares worth $23 million changing hands .

Stocks to rise today included: Auckland International Airport up 8c to 583, Baycorp Advantage up 2c to 164, Carter Holt Harvey up 7c to 172, Contact Energy up 3c to 485, Guinness Peat Group up a cent to 152,

Michael Hill up 2c to 445,

Steel and Tube up 13c to 368, Tourism Holdings up 2c to 107, Tower Group up 2c to 155, and the Warehouse up 10c to 470 .

Among stocks to fall were: Fletcher Building down 10c to 357, Independent News down a cent to 429, Infratil down 3c to 198, NZX down 3c to 407, Owens Group down 2c to 98, Ports of Auckland down 5c to 750, Promina down a cent to 250, Restaurant Brands down 3c to 144, Sanford down 12c to 508, and Sky TV down 5c to 455.

There were 48 rises and 42 falls on 132 stocks traded.

- NZPA