NZ stocks: Seventh straight gain for sharemarket

The New Zealand sharemarket posted its seventh straight gain yesterday, as the index of leading stocks surged 1.27 per cent on solid volume to nudge the psychological 2000 barrier.

"For the New Zealand market it's startling," Cavill White Securities managing director Don Turkington said. "What's encouraging is that it is rising on very big volume."

The market has been firmly driven by Telecom, which turned in another strong performance yesterday, rising 12c to 568. It traded as high as 575, and topped turnover with 6.5 million shares traded, worth $37 million.

Telecom has now risen 26 per cent off its six-year low of $4.50 on the first trading day of the year and was up nearly 12 per cent this week.

Mr Turkington said the key to the new enthusiasm for New Zealand stocks was the rebound of the kiwi, which yesterday broke back above 45USc.

The NZSE-40 capital index, closed 24.96 points ahead at 1997.24, its highest close since November 20. The top 10 index had a 1.75 per cent gain, rising 15.37 to 892.37, and the small stocks finished 18.02 points up at 5202.79.

Total turnover was 33.1 million shares, worth $106.4 million, and of the 147 shares traded, 63 rose and 36 fell.

Fletcher Energy helped push the index higher with a gain of 18c to $8.80 on turnover worth $32.1 million. Its US associate, Capstone Turbine, rose $US6, 18 per cent, to $US38-5/8. The turbine manufacturer has performed strongly this year amid concerns about California's power crisis.

Sky City continued its re-rating, gaining 30c to $8.90 to push to all-time highs, while Sky TV exhibited no ill-effects from losing rights to cover an All Black tour later this year. It rose 11c to $3.40. Its 47 per cent owner, Independent Newspapers, rose 13c to $3.40.

Air NZ A shares were steady on $1.62 but the Bs had a good day, rising 4c to $2.15. Contact Energy also had a good week, rising 4c to $2.81 with investors relieved cornerstone shareholder Edison Mission has no intention of quitting the stock.

- NZPA