NZ stocks: Market continues positive trend

The New Zealand sharemarket continued its 10-day rising trend after the Reserve Bank left interest rates unchanged today.

The NZSX-50 gross index closed up 2.11 points, or 0.10 per cent, at 2218.88, while the top-40 index was up 0.28 per cent at 2144.45.

Turnover of 27.36 million stocks, valued at $76.69 million, was topped in volume by Air New Zealand's 4.4 million stocks, worth $2.64 million.

Nigel Scott of ABN Amro Craigs said the market had a relatively run-of-the mill session today.

Air NZ rose a further 3c to a fresh year high of 62. The Commerce Commission will decide later this month whether to approve the proposed trans-Tasman alliance.

"Clearly if that happens (the alliance with Qantas gets approval), then maybe the long talked about, yet not discussed by the Government, cash issue can happen as the next part of the capital management plan," Mr Scott said.

"That might provide the extra liquidity required out in the marketplace."

Tranz Rail shareholders learnt this afternoon they have a further fortnight to decide whether to accept the 95c per share offer from Australia's Toll Holdings.

Toll, which is making a takeover bid for Tranz Rail, today booked a net annual profit of A$106.1 million ($120.8 million) -- up 43 per cent.

"People are contemplating their (Toll's) next move in Tranz Rail, which affects Mainfreight, which affects Owens," Mr Scott said.

Mainfreight, which is bidding for logistics company Owens Group, was up 2c at 130. In turn, Owens is trying to buy Tranz Rail's road transport business, Tranz Link.

Home appliance, electronics and lingerie retailer Pacific Retail Group jumped 17c to 220 after news it had bought Powerhouse -- the third largest British specialist appliance retailer -- for £17.2 million.

Fletcher Building fell 4c to 410, Auckland International Airport fell 5c to 635, Baycorp Advantage lost 3c to 260, Contact Energy was down 1c at 481, Fisher & Paykel Healthcare lost 8c to 1210, casino company Sky City was down 8c at 873 and Infratil lost 2c to 227.

Telecom gained 1c to 506 despite news the Commerce Commission was expanding the scope of its investigation into local loop unbundling.

F&P Appliances was up 5c at 1450, The Warehouse was up 5c at 525 ahead of its annual result tomorrow, Carter Holt Harvey rose 1c to 170, and Fletcher Forests was up 1c at 112.

Among the financial services stocks, ANZ was up 19c at 1997, AMP gained 15c to a four-month high of 780, Promina was up 4c at 228, Westpac fell 13c to 1680 and Tower rise 1c to 124.

Independent Newspapers Ltd was steady at 441 while the object of its takeover offer, Sky TV, rose 4c to 482.

There were 64 rises and 34 falls on the 146 stocks traded.

On Wall St the Dow Jones industrial average rose 45.19 points, or 0.5 per cent, to 9568.46; the broader Standard & Poor's 500 Index rose 4.28 points to 1026.27; and the Nasdaq climbed 11.42 points, or 0.62 per cent, to 1852.90.

- NZPA