NZ stocks: Index soars on Saddam's capture

The New Zealand sharemarket was buoyant as investors anticipated solid global trading following the capture of fallen Iraqi dictator Saddam Hussein.

At 5pm, the benchmark NZSX-50 index was at a new high at 2408.655 but closed slightly lower at 2406.93, up 22.43 points or almost 1 per cent. The former benchmark NZSX-40 capital index was up 20.98 points or 0.95 per cent at 2230.67.

Although the index rose strongly, turnover was a moderate $63 million . Rises outnumbered falls 81 to 30 on 155 stocks traded.

Certain stocks with exposure to the US market seemed to benefit from the news about Saddam.

Index touchstone Telecom rose 6c to 519 on $22 million worth of shares, and Fisher & Paykel Healthcare, which sees the US as a major market, rose 50 to 1250 on varying volume -- "a bit of positioning ahead of the US market," a broker said.

Dealers warned a market bounce driven solely by euphoria over Saddam would probably be shortlived.

"Although often this time of the year we do get a pre-Christmas rally, where a lot of people that might be considering selling eventually do do so," said Macquarie Equities broker Barry Johnson.

Housing-related stocks Fletcher Building and Cavalier Carpets also had a good day, Cavalier rising 10c to 550 and Fletcher Building up 7c to 405.

Fletcher Building was probably playing "catch-up" after lagging behind the other leaders, Mr Johnson said.

The banking sector in Australia also appeared to be making a comeback. Westpac was up 15c to 1720, ANZ rose 15c to 1990 and AMP was up 15c to 665 as trading for entitlements in its United Kingdom unit, HHP Plc, closed today.

Utilities investor Infratil gained 12c to 290 as it announced it was upping its successful investment in Glasgow Prestwick airport.

Independent Newspapers Ltd rose 12c to 500 while its major asset, Sky TV, was 3c higher at 525.

"I think Sky TV got a little bit ahead of INL because INL essentially is Sky TV with a bit of cash, and I think that gap got a little bit too wide," said Suzanne Kinnaird, a broker with Forsyth Barr Frater Williams .

Other shares on the rise today included: Ports of Auckland, up 10c to 800, Trustpower up 5c to 600, Port of Tauranga up 7c to 415, and Freightways to a new high of 212, up 7c.

On the downside, Wrightson came off a cent to 144 following the close on Friday of Rural Portfolio Investments' offer of $1.45 per share.

Brewer Lion Nathan was down 2c at 673 as the company went ex-dividend at A14 cents (NZ16 cents) a share.

Shares worth $90,108 were traded on the New Zealand Alternative Exchange. Trading on NZX started 10 minutes late this morning after it experienced "technical difficulties."

- NZPA