NZ stocks: F&P Appliances leads sharemarket up

6.40pm - by KATE PERRY

The sharemarket wrapped up the week by hitting another new peak today, led by a surging Fisher & Paykel Appliances.

The benchmark NZSX-50 gross index was up 6.62 points to 2654.84, while the NZSX-All capital index rose 1.17 points to 895.58.

The rise was despite a slip from market leader Telecom, which fell 10c to 568.

The day's star performer was Fisher & Paykel Appliances, which rose 31c, or 7.08 per cent, to 469.

F&P Appliances today announced it had struck a deal with US home improvement chain Lowes which will increase the number of US outlets selling its products by a half.

"This is a company that shows very strong operating leverage and their new arrangement in the US is likely to give them substantial benefits," Murray Rutherford of Goldman Sachs JB Were said.

Retailer Harvey Norman announced today it had decided to withdraw from its exclusive dealer arrangement with F&P Appliances, as from July 1.

But Mr Rutherford estimated Harvey Norman accounted for less than 15 per cent of F&P Appliances sales -- which he expected the American deal would more than offset.

Mr Rutherford said the sharemarket's buoyant showing this week was indicative of the growing strength of the market, which was up 34 per cent over the past 12 months and has risen 8 per cent so far this year.

Infratil rose 10c to 305. Mr Rutherford said the stock was responding to very strong tourism numbers going through Wellington Airport, as well as strong performances from some of its other investments.

Contact Energy was up 10c to 588 after Origin Energy and the Australian Gas Light Co were tipped as front runners for the purchase of Edison Mission's 50.1 per cent stake in the company.

Powerco was up 3c to 201 on reports it is in merger talks with NGC Holdings, which was unchanged at 260.

Promina rose 6c to 446, after its chief executive said it was on track to meet its return on capital and also denied speculation the company was looking at any big acquisitions.

Other stocks on the move today included: NZX slumping 20c to 940, Oceana Gold down 10c at 100, Waste Management, down 4c at 446, Telstra down 12c at 545, Michael Hill Jeweller down 10c at 590, and TrustPower down 5c at 415.

Those on the rise included: DB Breweries up 15c at 875, The Warehouse up 6c at 439, Ports of Auckland up 6c at 736, F&P Healthcare up 16c at 1273, Auckland International Airport up 3c at 688, Freightways up 5c at 230, Sky City Entertainment up 3c at 453, Sky Network TV up 2c at 525 and Carter Holt Harvey up 3c at 219.

The market's total turnover today was worth $103.8 million. Of the 147 stocks traded today there were 69 rises and 35 falls.

- NZPA