12.00 pm
The NZSE-40 capital index neared the 2100 barrier today as Telecom's continued good form helped the market rally.
Telecom added 10c to yesterday's 8c gain to be at 535. At one stage it hit 540 -- up 8 per cent for the year and 31 per cent off its eight-year
low of 413 touched on October 24.
Sam MacDonald of DF Mainland said a number of players sold out to a big purchaser yesterday and some were now recovering short positions.
While Telecom could run up as high as 540 or 550, he believed the run would be short-lived.
"Our market is close to valuation. It's a bit top heavy."
He said Telecom's fair price was nearer to $5.
With a 22 per cent weighting in the NZSE-40, Telecom has helped drag the capital index to an eight-month high of 2098.44. The index came off its high along with Telecom and at 11.30am was at 2093.76.
ABN Amro lifted its Telecom valuation after recent price increases and has maintained its "add" rating on the stock.
ABN Amro put a 541 valuation on Telecom.
Morning volume was better than on previous days this year at $21.8 million with more than half of that in Telecom.
NZ Refining fell 30c to 1820. Oil companies cut petrol prices yesterday and world refined petrol prices are currently at, or below, crude prices, leaving refineries' margins in tatters.
Fisher and Paykel Appliance was up 5c at 1090, Wilson and Horton exchangeables were up 15c to 870 on low volume and AMP was up 10c at 2310. The Warehouse was down 10c at 665, Sky City was 29 2c 619 and Fletcher Building was flat at 296.
Goodman Fielder fell 4c at 184 after saying last night it was unaware of any fresh news that would affect its share price, after bid talk earlier pushed the stock to a near 2-1/2-year high.
Asked by the ASX to comment on rumours of a new bid from Pacific Equity Partners (PEP), Goodman said it knew of no other events that would have a material impact on its share price.
Goodman shares rose 7.5 per cent yesterday in Australia to $A1.57 ($NZ1.92) a share.
In all, there were 25 rises and 28 falls among the 98 stocks traded.
- NZPA
12.00 pm
The NZSE-40 capital index neared the 2100 barrier today as Telecom's continued good form helped the market rally.
Telecom added 10c to yesterday's 8c gain to be at 535. At one stage it hit 540 -- up 8 per cent for the year and 31 per cent off its eight-year
AdvertisementAdvertise with NZME.