NZ stocks: Fletcher Building nudges shares higher

The New Zealand sharemarket edged higher today, led by top stocks Fletcher Building, Contact Energy and Telecom.

The benchmark NZSE-40 index added 5.52 points to 1988.71 on shares worth $79 million - eclipsing yesterday's turnover of $59 million.

Fletcher Building, which is set to release its half year earnings shortly, climbed 11c to 354 - its highest close since April 1998.

The company said at its annual meeting in November that it expected to record earnings before interest and tax (ebit) of about $140 million for the six months ending December 31.

Building activity in New Zealand has soared during the period, fuelled by net migration, a robust economy and low interest rates.

Fletcher Building, a top-10 New Zealand stock, reported an after tax profit of $93 million for the year to June 2002.

"Buying ahead of the result is the key there," ABN Amro Craigs retail equities adviser Nigel Scott said.

Electricity generator and retailer Contact Energy powered ahead 4c to 411 as spot electricity prices continued to rise amidst the cooler weather sweeping the country. The country's average daily power demand to Tuesday rose to 96,242 MW from 95,134 MW the previous week.

Traders also said there appeared to be a steady national growth in electricity demand during the past six months that has been hidden by seasonal affects.

"The generating stories have reacted to that on the day," Mr Scott said.

Top stock Telecom also buoyed the index with a 2c rise to 452.

Activity on the broader market was mixed, however, with falls outnumbering rises by 52 to 38 among the 136 stocks traded.

Carter Holt Harvey dipped 2c to 176 as a five-fold jump in annual net profit failed to impress investors.

The shares remain in the middle of the $1.50-$2.00 range they have been in for most of the past two years, despite the company's much improved December year net profit of $137 million compared with $25 million in 2001.

Tranz Rail eased 5c to 131 after recording a 92 per cent drop in net profit to $1.9 million for the first half ending December 31.

Last year's result was buoyed by the sale of Auckland's commuter rail network and the Tranz Scenic business, while today's figure was hurt by a troubled period in which Tranz Rail has struggled through debt refinancing, a heavily discounted rights issue, a ratings downgrade and problems with its Wellington commuter rail network.

Wrightson closed steady at 119 after saying it expected to beat a previous half year forecast after stronger than expected trading in December.

This week's top performer Sky City Entertainment Group succumbed to a spot of profit taking, easing back 26c to 873 after touching a fresh all time high of 901 yesterday.

In other moves Fisher and Paykel Healthcare added 5c to 1015; its Appliance cousin rose 10c to 1010; Ports of Auckland was up 5c at 685; The Warehouse climbed 4c to 716; Briscoe Group lost 9c to 266; Auckland International Airport added a cent to 543; and Rubicon slipped a cent to 73c.

- NZPA