NZ stocks: Market closes back in black, Tranz Rail up

6.00pm

The New Zealand sharemarket ended in the black today, almost recouping the ground lost yesterday.

The benchmark NZSX-50 gross index closed up 7.42 points, or 0.35 per cent, at 2113.29 while the NZSX 40 capital index was up 0.42 per cent at 2075.79.

The NZSX-50 has closed above 2000 points for the last month, rising 4.4 per cent during that time.

Topping turnover of 31.60 million shares, valued at $81.32 million, was Telecom's 6.96 million stocks worth $35.40 million.

Peter Stokes of JB Were said the market held up well during the day with good volumes traded, despite a lack of corporate news.

Tranz Rail was up 1c at 92 after Toll Holdings said today it would launch a revised bid, following the Government's decision last week to bail out the rail operator.

"That (closing price) is clearly saying that the market had already priced out of the equation the 75c bid of Toll. While there was a bit of excitement in the early part of trading where the stock peaked at 96 ... the market's taken a wait and see approach as to exactly what Toll will front up with tomorrow."

Tranz Rail saw healthy volume of $6.43 million worth of shares.

Data management company Baycorp Advantage regained some ground today after a "kneejerk" reaction yesterday to a speculative story about its Telstra debt book.

Baycorp was up 7c at 162, after falling 15c yesterday.

"The market was saying it was a little bit overdone yesterday, you always get a kneejerk reaction to some news normally whether it be positive or negative," Mr Stokes said.

Discount retailer The Warehouse bounced up 11c to 453.

"I think people are just taking a longer-term view on the stock," he said.

"It has been incredibly stable since the surprise resignation of (chief executive) Greg Muir. People are just seeing the value of the franchise -- while there have been a couple of shocks this year it ... continues to look cheap."

Market leader Telecom crept up 4c to 510, Fisher & Paykel Appliances reached a record closing high, up 18c at 1305, and Healthcare was up 20c at 1150.

"Stocks like Healthcare are creating pretty good niche markets offshore and there's been some positive news of late, and both (F&P) stocks offer good yields," Mr Stokes said.

Elsewhere on the market, Air New Zealand was up 1c at 53, Carter Holt Harvey was down 2c at 164, Contact Energy rose 2c to 479, Fletcher Building lost 6c to 365, Tower was down 2c at 154, Independent Newspapers gained 1c to 433 and its pay TV asset, Sky TV, rose 2c to 455.

NZX shares were up 12c at 402 after listing at 420c last week, while its rights were at 250, up 10c.

Among the smaller stocks, Tourism Holdings Ltd rose 1c to 104, Richina was up 4c at 36, Wakefield Hospital was up 5c at 160, Skellmax lost 1c to 114 and Hirequip, formerly Southern Capital, gained 1c to 64.

There were 45 rises and 37 falls on the 122 stocks traded.

- NZPA