12.40pm
A leap by Hallenstein Glasson on a profit upgrade and a further surge by Fletcher Building were the main features on the sharemarket this morning.
Hallenstein rose 4.3 per cent, or 13c to 316, following the announcement before the market opened that it expected its annual profit to "significantly exceed" last
year's result.
It said favourable trading conditions during the first half of the year had continued into winter.
But the market's real mover was top 10 stock Fletcher Building, which doubled yesterday's 11c gain to hit 480 -- a seven-year high.
The company's chief executive Ralph Waters told NZPA that yesterday's rise was due to a government announcement that it would allow more migrants into the country.
He scotched rumours of an imminent acquisition.
"The real truth is that we still trade at a multiple below what the Australian building materials companies trade at; our prospects continue to look strong for the foreseeable future, and I think what you are seeing is a re-rating of the stock to somewhere near where it needs to be."
Mr Waters said Fletcher Building would be extensively involved in many infrastructure projects in the year ahead.
Macquarie Equities broker David Cleal said "the slowdown in the residential market has been concerning the market and the immigration report takes that away".
The benchmark NZSX-50 gross index was up 1.04 points to 2688.64 at 11.45am. The NZSX All index was up 0.64 to 903.88.
Trading in market leader Telecom made up half of the market's $45.9 million total turnover. It was down 1c at 586.
The Warehouse recovered 1c to 412 after dropping 6c yesterday to a four-year low. Mr Cleal said another broking firm had put out a negative report on the company's Australian operations. The report is concerned about the company's capital expenditure in Australia.
NZX fell 5c to 845 and Sanford fell 5c to 450, as did Promina to 440.
Auckland Airport fell 2c more to 673 to add to yesterday's 6c fall.
Contact Energy, which fell 17c yesterday as nervousness increased about the closure of bids for Edison Mission's controlling stake, rose 1c to 579 after it had earlier fallen another 2c.
Another power company, Powerco, was down 1c to 209 also on uncertainty about a change of ownership in its controlling shareholder.
There were 36 stocks down and 26 up among the 117 traded in early business.
- NZPA
