NZ stocks: Fresh cash and hope push shares higher

The New Zealand sharemarket's indices showed healthy gains today propelled by economic optimism and an injection of fresh cash.

The NZSX-50 gross index rose 14.65 points or 0.64 per cent to 2293.17 and the NZSX-40 capital index rose 17 points or 0.77 per cent to 2198.69. Turnover was a solid $84.78 million on 32 million shares.

Direct Broking's Ken Allen said trading today was generally positive across the board, "powered by new quarter money and general positive sentiment towards the economy that's now being reflected in the market".

"Some of the smaller cap stocks did really well", with the likes of Cavalier, Waste Management showing good gains, "but the leaders also performed decently", he said.

Cavalier Corp rose 25c to 545, and Waste Management rose 11c to 385.

"You are seeing some pretty good strength in some of the retail stocks still, that's the major sector that's moving."

Discount retailer the Warehouse rose 20c to 585, Michael Hill rose 9c to 435, Briscoe Group rose 7c to 197, and Pacific Retail Group was up 3c to 258.

Another stock to show good gains was Fisher & Paykel Appliances which put on 20c to 1480, a move attributable to the weaker kiwi-aussie cross, Mr Allen said.

Market leader Telecom was "still a bit subdued" Mr Allen said. It gained a cent to 507. "It's probably still feeling the effects of some overseas selling on the back of the stronger currency."

Courier company Freightways finished its debut week on the market a cent higher today at 183. "It's been a good listing", Mr Allen said.

"I don't think anyone would be complaining about that one, everyone who bought it in the new issue has made money and it's just gone from strength to strength from day one."

Australian telecommunications company Telstra gained 19c to 568 on news today it had offered to buy back its own stock from investors at up to 12 per cent more than yesterday's Australian closing price.

Elsewhere, stocks to rise today included: Air NZ up 2c to 53, Auckland International Airport up a cent to 651, BayCorp Advantage up 2c to 258, Carter Holt Harvey up 3c to 174, Contact Energy up 7c to 512, Fletcher Building up a cent to 429, Mainfreight up a cent to 145, NGC Holdings up 3c to 168, Ports of Auckland up 2c to 812, Port of Tauranga up 6c to 421, Postie Plus up a cent to 118, Richina up 2c to 37, Ryman Healthcare up 2c to 208, Sanford up 6c to 511, Sky City up a cent to 865, Steel & Tube up a cent to 365, Telstra up 19c to 568, Tower up 2c to 137, Westfield up 3c to 382, and Wrightson up 2c to 149.

Stocks to fall today included: Dorchester Pacific down 5c to 175, NZX down 4c to 446, Promina down 7c to 365, Sky TV down 2c to 498, and Tranz Rail down a cent to 108.

Gainers outnumbered losers 66 to 31 on 143 stocks traded.

- NZPA