NZ stocks: Market gains steam to post record highs

After a slow start out of the blocks this morning, the New Zealand sharemarket's two top indices forged ahead to post record highs.

At 5pm, the benchmark NZSX-50 index was up 6.44 points at 2774.61, while the NZSX-All capital index was up 2.30 points at 934.46.

Shares in market heavyweight Telecom were up 2c at 615.

The $54.6 million worth of Telecom shares to change hands today accounted for 50.4 per cent of the $108.4 million on NZX.

Among the 160 stocks traded today were 50 rises and 49 falls.

ABN Amro Craigs broker James Lock said the market had started slowly but gradually gained steam.

"It was an interesting day in general...particularly following the interest rate announcement," he told NZPA today.

This morning Reserve Bank governor Alan Bollard lifted the official cash rate by 25 basis points to 6.0 per cent and indicated another rise in September.

That put a damper on early trade, but as the session unfolded it began to gain momentum, "much of that coming from Telecom, Fisher & Paykel Healthcare, and Auckland International Airport".

The listing of media firm CanWest MediaWorks gave investors focus, Mr Lock said.

"The market was kept relatively short in this stock and we did expect a good premium on listing.

"It was a very well managed float, but turnover was somewhat lighter than I would have expected."

CanWest shares closed at $1.64 -- a 7.1 per cent premium to its issue price of $1.53.

Canadian media giant CanWest Global Communications floated off 30 per cent of its New Zealand television and radio assets by issuing 68 million shares and raising $104 million.

In other market news, TrustPower posted a narrower first quarter profit of $15.7 million, down from $17.2 million for the same period last year.

Shares in the electricity firm were down 1c at 469.

This morning the Takeovers Panel conditionally approved several exemptions for Australian firm Origin Energy's takeover bid for Contact Energy.

The principal exemption will enable Origin to acquire Edison Mission's controlling 51 per cent stake in Contact at a holding company level, rather than at shareholder level.

Contact shares were unchanged on 600c.

Also today, Air New Zealand unveiled a new customer loyalty programme. Air NZ Airpoints Dollars would replace Airpoints, and could be used like cash when booking seats.

Other shares on the move today included: AMP down 4c at 687, Carter Holt Harvey up 4c at 215, F&P Healthcare up 9c at 1335, Auckland International Airport up 4c at 700, Hellaby down 5c at 550, Michael Hill International up 7c at 620, Mooring Systems down 19c at 350, Promina down 11c at 425, Tower up 10c at 190, and NGC Holdings up 8c at 278.

Overseas, the Dow Jones was up 31.93 points at 10,117.07, the Standard & Poor's 500 was up 0.59 of a point at 1095.42, and the Nasdaq Composite was down 10.84 points at 1858.26.

- NZPA