NZ stocks: Index pushes to new highs despite Telcom fall

5.00pm

The sharemarket's index of top 50 stocks pushed on to new highs today despite dominant stock Telecom easing back.

Instead, it was left to No.2 stock Carter Holt Harvey and some of the other leaders that have lagged this month's rally to carry the market.

ABN Amro Craigs broker James Lock noted the market finished on a strong note.

"There is still good buying in the leaders. There seems to be new money coming into the market, especially in the leaders."

The benchmark NZSX-50 index closed up 13.40 points at 2788.01.

Telecom was stuck below water all day, closing 3c lower at 612 as investors took profits.

Carter Holt, which has bypassed the market's recent rally, closed 6c up at 221.

Contact Energy initially eased on its flat third quarter profit of $41.7m and despite the announcement of a 10cps special dividend.

However, Mr Lock said the underlying profit appeared solid in the face of weak wholesale power prices "and the market was happy". It finished 2c up at a record 602.

Hamilton Hindin Greene broker Grant Williamson said the size of the special dividend arising because of the change in controlling shareholder, was slightly disappointing.

Auckland Airport, another stock to have trailed the market rally, rose 8c to 708.

TrustPower fell 9c to 460 after it posted a fall in first quarter profit to $15.7m from $17.2m.

Fisher & Paykel Healthcare rose 17c to 1352, its highest level in 2-1/2 years. It has rallied 67 percent in two years.

NGC, which was sold off in the wake of Origin Energy's success in securing Contact Energy, recouped 8c to 286 today. The selloff was assessed as knee-jerk reaction and the stock remains high yielding, Mr Lock said

Others in the top 50 to prosper included Waste Management, 6c to 485, Fletcher Building, 10c to 498, Promina 6c to 431, Independent Newspapers, 6c to 474, Westpac NZ, 10c to 1790 and BIL 2 to 71c.

Falling stocks included: Cavalier, 3c to 495, Michael Hill, 4c to 616, and Steel & Tube, 3c to 436.

The small stocks index had another good day with a 35.99 point gain to 7427.43. The top 10 index rose 5.96 points to 1149.08 while the NZSX-All capital index closed up 3.12 up at 937.58.

CanWest MediaWorks on its second day of trading rose as high as 168, up from its 153 issue price, but it closed down 1c at 163.

Among the minnows, Dorchester rose 11c to 285, Mooring Systems rose 10c to 360, NZX fell 10c to 850, Wakefield rose 6c to 276 and Utilico rose 7c to 68.

Turnover was moderate at 34 million shares worth $93.5m.

There were 69 stocks up and 37 down among 156 traded.

- NZPA