NZ stocks: Move higher despite dividend payouts

The New Zealand sharemarket had an overall positive session today with its leading indices moving in opposite directions as a number of top stocks went ex-dividend and in general moved slightly higher afterward.

The NZSX-50 gross index which strips out the downward effect of dividend payouts by individual stocks ended 9.98 points or 0.40 per cent higher at 2517.48. Earlier in the session it hit a seven week high of 2520.

The soon to be abolished NZSX-40 capital index fell as a result of falls in ex-div stocks today, ending the session 6.82 points or 0.30 per cent lower at 2279.97.

Turnover was relatively slim at $56 million worith 37 rises and 55 falls among the 137 stocks traded.

Direct Broking's Peter Lynds said the market's tone was "a bit better" today. "It's still reasonably quiet but there's a bit of buying interest out there."

ASB Securities head of advisory Stephen Wright also said the market was better, "although you wouldn't think it from all the red figures".

"Some shares didn't go down by the full amount of their dividend...as a result of that, the gross index is still higher even though there's a raft of minuses on the market."

Among the ex-div stocks, Auckland International Airport Ltd which paid 10.5c cents per share finished 11c lower at 639, Fisher & Paykel Appliances (21cps) down 17c at 428, Fletcher Building (11cps) down 7c to 429, Freightways (5.85cps) down 3c to 217, Michael Hill International (8cps) down 10c to 515, Nuplex Industries (11.5cps) down 10c to 460, Sky City (11cps) down 14c to 428, Colonial Motor Co Ltd (10.5cps) unchanged at 286 and TrustP (10cps) down 15c to 695.

Mr Wright said he had expected to the local to weaken on negative overseas sentiment."The fact that the market is a wee bit better just shows how resilient our market is, how it's still dominated by investors seeking atttractive dividend yields of which there's quite a few stocks."

Market leader Telecom helped the market higher adding 3c to 582. Ports of Auckland was 4c higher at 740.

Wood processor Tenon which had a small run up on Friday was subject to some profit taking today falling 2c to 137.

Tranz Rail was unchanged on 140 after announcing it would transport a million tonnes of coal from Tauranga to Genesis Energy's power station at Huntly. Port of Tauranga shares were 5c lower at 441.

Air New Zealand lost a cent to 38c after revealing today it may have to pay a $107 million tax arrears bill in Hong Kong. The state-owned airline said it would challenge the bill and did not expect y the headline figure.

Fisher & Paykel Healthcare continued its good form since announcing last week new products. It was up 10c to 1180.

Other stocks to move today included: Baycorp Advantage down 6c to 300, Cavalier Corp down 9c to 471, Contact Energy up 5c to 512, Mooring Systems up 12c to 357, NZX up 20c to 830, Promina down 6c to 411, and Sky TV up 9c to 529.

- NZPA