NZ Stocks: Momentum pushes sharemarket to 8 month high

The sharemarket continued its pattern of rises for all four trading days of 2002 to date, stretching the barometer index to new eight month highs.

The NZSE-40 capital index was up 3.61 points to 2091.63 at 11.25 am but turnover remained light at $13.9 million. Initially, the market looked as if it would follow Wall Street down but, led by market heavyweight Telecom, turned around.

Telecom, one of the stocks favoured by many analysts to do well this year, continued its winning ways, rising 2c to 523 on turnover worth just over $4.8 million.

UBS Warburg broker Richard Leggat said there was good interest in Telecom.

The buying was prompted by momentum with investors seeking stocks trending upwards, rather than any specific news, he said.

Fletcher Building continued its great run, breaking above $3 with a 5c gain to 303. ABN Amro head of research Malcolm Davie said Building's good performance this year reflected the New Zealand economy's. The company is expected to benefit from low interest rates and last year's turnaround of migration flows. Fletcher Building shares rose by 60 percent last year, having recovered from a low of $1.77 in November 2000.

Waste Management, another stock picked as a likely winner this year by many analysts, rose 4c to 315.

The Fisher & Paykel stocks went in different directions, with Appliances rising 14c to 1050 and Healthcare dropping 15c to 1650.

Carter Holt Harvey was steady on 181 and Contact Energy fell 1c to 396.

Frucor was up 1c to 231 after the independent directors changed their tune and recommended shareholders accept Danone's $2.35/share bid. They said no alternative bid had emerged and independent advisers Grant Samuel & Associates had revised their valuation of Frucor down.

Among other stocks to move, The Warehouse fell 3c to 676, ANZ Bank was up 23c at 2148, Auckland Airport was up 4c to 372, Blis was up 6c at 70, Port of Tauranga down 14c to 711, Sanford up 10c to 625 and Sky TV up 5c to 405.

There were 40 stocks to rise and 17 down among the 105 traded.

- NZPA