NZ stocks: market gains as Telcos improve globally

12.00pm

The New Zealand market gained some ground today after falling about 6 points yesterday.

By mid-morning the NZSE-40 capital index was up 16.31 points, or 0.80 per cent, at 2066.84, with turnover of 9.21 million stocks valued at $19.31 million.

Topping that was Telecom's $5.86 million worth of stocks.

Ian Witters of ASB Securities said the New Zealand market was a lot stronger today despite the quiet turnover, following big rises in the US overnight.

The blue-chip Dow tacked on a 169.74-point gain, or 1.71 per cent, to 10,109.66, while the technology-loaded Nasdaq Composite Index jumped 51.69 points, or 3.23 per cent, to 1652.54.

"It's certainly a lot more confident. Telecom's led our market this morning and also Telstra's up -- telcos around the world have had a better day, and New Zealand's followed on," Mr Witters said.

By mid-morning Telecom was up 8c at 498, while Australian telco Telstra was up 3c at 565.

One of yesterday's big risers -- Ports of Auckland, which closed yesterday 50c higher than its Friday close -- shed 25c this morning to 675 after a good start.

Ports of Auckland went ex-dividend yesterday to the tune of 11.54 cents per share, and also underwent a 4:5 capital reduction.

"It (opened) slightly above the restructured figure -- the restructured figure on the closing price on Friday was (650), and it closed yesterday at 700," Mr Witters said.

Healthcare marketer Ebos, which climbed 24c yesterday on a mere 200 shares to close at 326, was untraded today.

Fletcher Building zoomed up 8c to 285, after a poor run recently.

"I think the reality is it was just a bit oversold on fears of interest rate rises, which are a genuine effect on the stock, but the stock has genuinely got good growth opportunities, construction and housing is doing very well," he said.

Debt collector Baycorp Advantage also rose, up 6c at 420, after the entry of a trans-Tasman competitor hammered its share price recently.

"Baycorp is recovering off its lows and looks to have found a firm base around 400 or better."

Elsewhere on the market, Auckland Airport, which had a monster rise yesterday to new highs, lost 1c to 480; Briscoe Group rose 3c to 212 on light volume, Contact Energy gained 3c to 405, Fisher & Paykel Healthcare was up 1c at 920; Guinness Peat Group rose 2c to 207, Independent Newspapers Ltd was up 3c at 368, Sky City Casino rose 5c to 605 and Air New Zealand was up 1c at 56.

National Property Trust today announced a takeover offer for The Newmarket Property Trust, which was up 3c at 51.

Axa lost 2c to 362, Ports of Tauranga was down 5c at 750, Powerco lost 3c to 190, and ANZ was down 5c at 2275.

There were 43 rises and 25 falls on the 113 stocks traded.

- NZPA