NZ Stocks: Offshore interest pushes top 40 to six-month high

Greater interest from offshore investors helped push the Top 40 index above the key 2000 level for the first time since early November.

The NZSE-40 capital index was up 11.29 points to 2006.17 on volume worth $89 million - "not too sleepy" for a Monday at the start of the year, said one broker.

"I think the theme is that there is foreign interest in our market," said another broker, Alan Wills of Forsyth Barr Frater Williams broker.

"It's been going on for over a week now, so our market has performed very strongly since the start of the calendar year and on reasonably good volumes for this time of the year."

Mr Wills said New Zealand's attraction was a mix of strong currency, a robust economy, reasonable valuations, high yields and a good 2002 performance relative to other world markets.

Most leaders enjoyed share price rises, including Carter Holt Harvey, which touched a six month high at 192 before edging back to 191, up 3c on $7.8 million worth of shares. A forecast for higher pulp prices was thought to have added to the stock's allure.

Sky City was another star performer, touching a year high of 830 before closing up 24c at 829 on moderate turnover worth $3.5 million. One broker said rumours had returned of an Australian takeover.

Market leader Telecom accounted for virtually half today's trading but fell 3c to 467 on $43.5 million worth of shares.

Other stocks to benefit from the higher interest included Contact up 3c to 410, Independent Newspapers, up 9c to 334 and its sister company Sky TV was up 5c to 363.

INL rise's was "not on huge volume but it's still getting its share of interest because its market cap is quite large," said Mr Wills. Another suggestion was that INL was benefiting from the strong currency which meant Sky TV's purchasing power would go further.

Air New Zealand rose 3c to 56 as the airline announced a code-sharing arrangement with Air Canada to Los Angeles and Canada in the wake of United Airlines decision to axe its New Zealand route.

Despite the loss of a big customer, Auckland Airport gained 6c to 548.

Port of Auckland rose 15c to 685 but brokers said it was on low turnover; Turners Auctions rose 10c to 280; and Westpac NZ rose 18c to 1445.

Rises outnumbered falls 38 to 31 on 126 stocks traded.

New Zealand's performance ignored a mixed day on Wall St, where tech stocks inched ahead on hopes of a brighter year but other markets were flat on the latest jobs outlook.

A handful of strong earnings outlooks handed the Nasdaq Composite Index a rise of 9.29 points, or 0.7 per cent, at 1,447.75.

But a government report showing the economy shed 101,000 jobs in December surprised a market desperate for signs of economic stability.

The Dow Jones industrial average edged 8.77 points higher, or 0.1 per cent, at 8,784.95, while the broader Standard & Poor's 500 Index was flat, closing at 927.57.

- NZPA