NZ stocks: Markets led higher by CHH, Contact and Telecom

12.35pm


The New Zealand sharemarket's benchmark indices moved higher in fairly quiet trade this morning led up by gains in a triumvirate of stocks.

By 11.30am the NZSX-50 gross index was 11.01 points or 0.44 per cent higher at 2514.15, while the NZSX-40 capital index was up 7.57 points or 0.42 per cent at 2333.57.

Turnover was $32.19 million with 33 rises and 36 falls on 114 stocks traded.

Amro Craigs Equities retail adviser Bryon Burke said the market was being dragged higher by Carter Holt Harvey and Contact with support from market leader Telecom.

Although it slipped yesterday on trade undercut by holidays in Auckland and Australia, the market's number two stock, Carter Holt, was up 4c to 215 after earlier hitting a fresh four year high of 217.

Investor interest in Carter Holt has surged since the wood processor announced its intention to sell its tissue business and make a capital return to shareholders. Speculation the company may sell its forest assets has also helped fix market attention on the stock.

The company is to announce its fourth quarter result on Thursday and analysts expect it to post Ebit (earnings before interest and tax) of about $100 million for the quarter against $82 million a year earlier.

Contact was 4c higher at 574 after earlier reaching as high as 577, its loftiest level ever.

Mr Burke said both stocks were up after "a couple of large lines were traded early on in the session at higher levels than their previous close and that set the price for both stocks".

Telecom was up 4c at 555 after its stock finished higher on the US market this morning.

"That's sort of set the tone for the day really, slightly in positive territory.

"Trading is pretty light after the long weekend.

"People are waiting for Australia to open to check the direction of the market and a lot of people (are) obviously waiting for the order flow to kick in for this afternoon."

Elsewhere, Mr Burke said many other stocks were up or down a couple of cents as investors returned from the long weekend.

Other stocks to move by 11.30am included: Amp down 5c to 545, Auckland Airport down 2c to 679, DB Breweries down 20c to 805, Fisher and Paykel Appliances up 2c to 380, Fletcher Building up 2c to 405, GRD down 4c to 241, Guinness Peat Group up 2c to 191, Hellaby Holdings down 3c to 507, Lion Nathan down 5c to 675, Mooring Systems down 5c to 270, Nuplex up 5c to 445, NZX up 9c to 625, Owens Group up 2c to 120, Ports of Auckland down 2c to 780, Promina up 2c to 384, Repco up 2c to 315, Sky City down 2c to 459, Sky TV down 3c to 527, Software of Excellence down 5c to 165, Steel & Tube Holdings up 2c to 397, Telecom up 4c to 555, Tranz Rail down 2c to 148 and Vertex up 3c to 144.

On overseas markets, US stocks rose yesterday with the Dow Jones industrial average and Nasdaq Composite Index hitting highs not seen for more than 2-1/2 years, as investors cheered earnings reports, strong housing data and a bullish report on Merck & Co Inc.

In London, Britain's top shares suffered a third straight day of losses, hit by weak insurers and by BAE Systems after a rival was chosen for talks on a key contract.

In Tokyo, Japanese stocks closed lower, led by a slide in banks and several heavily indebted firms.

- NZPA