Retail stocks, led by The Warehouse, again spurred the sharemarket higher today with the old benchmark top 40 index hitting its highest level in nearly six years.
The tone was set by Wall Street where the blue-chip Dow Jones industrial average jumped 1.3 per cent and the technology-dominated Nasdaq soared 2
per cent on solid corporate and economic news.
"It was pretty much across the board. Volumes still remain pretty light, but clearly the market has got a good tone about it," Goldman Sachs JBWere broker Humphrey Sherratt said.
The benchmark NZSX-50 index set new highs, rising 19.86 points, or 0.8 per cent, to 2472.88. The old benchmark index climbed 16.96 points, 0.74 per cent, to 2299.21.
Volume was light with 22.8 million shares traded worth $59.1 million.
The Warehouse build on yesterday's 6c gain with a 16c rise to 534. Michael Hill rose 10c to 500, Briscoe rose 3c to 176, and Pacific Retail was steady on 236. Hallenstein Glasson fell 1c to 276
Retailers rang up a record $4.4 billion in sales during the Christmas trading period, reaping the benefits of low interest rates and the booming economy.
"Clearly sales have been strong over the Christmas period, but the big question is to what extent margins have been impacted?" Mr Sherratt said.
Although the retailers led the way as they did yesterday, buying was across the board and heavyweight Telecom underpinned the market.
It continued its good form since last month's favourable recommendation from the telecoms commissioner on local loop unbundling. The 5c rise to 544 on volume worth $21.1 million took it to its highest since February 2002.
With wholesale electricity prices on the rise, power stocks had a good day. Contact Energy rose 5c to 544 and TrustPower, the star of last year's top 50, added 20c to a new record high of 670.
Another of last year's stars, Auckland Airport, also hit a new record, up 7c to 710.
Lion Nathan rose 9c to 695 on reports that beer sales are strong thanks to the hot summer.
Fletcher Building had a strong day, rising 12c to 432.
Carter Holt Harvey rose 1c to 189 on heavy volume worth $7.5 million. Swedish company SCA Svenska Cellulosa said it was interested in Carter's tissue business which is on the block.
Austral Pacific Energy, formerly Indo Pacific, debuted on the New Zealand market at 207 and eased back to 205 at the close. In December, Austral raised $8 million after offering four million shares at $2 each. It is also listed on Canada's Toronto Ventures Exchange.
Other good performers today were: AMP, 5c to 575, Colonial Motors, 8c to 288, Mooring Systems, 20c to 215, NZX, 7c to 572, Renaissance, 4c to 70, Taylors, 9c to 259, Restaurant Brands, 6c to 119, Westpac NZ, 9c to 1745, Fisher & Paykel Appliances, 6c to 382, Freightways, 3c to 229, Sky City, 3c to 462, Tower, 3c to 129 and Vertex, 13c to 145.
Going against the trend were: Cavalier Corp, down 4c to 556, Ports of Auckland, 4c to 796, and Hellaby, 6c to 495.
Rises outnumbered falls 62 to 30 among the 130 stocks traded.
- NZPA
<i>NZ stocks:</i> Retail stocks star as share index pushed to near 6-year high
Retail stocks, led by The Warehouse, again spurred the sharemarket higher today with the old benchmark top 40 index hitting its highest level in nearly six years.
The tone was set by Wall Street where the blue-chip Dow Jones industrial average jumped 1.3 per cent and the technology-dominated Nasdaq soared 2
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