NZ stocks: Sharemarket in for another healthy rise

12:00 am

The New Zealand sharemarket was shaping up for another healthy rise on the Top 40 index today, but it was still dogged by untrustworthy low turnover.

Just after 11am, the NZSE-40 capital index was up 5.19 points to 2067.08 as a paltry turnover of $8 million.

Yesterday the index rose by 8 points on low volumes, with many market players still on holiday.

Telecom topped the total turnover - it initially jumped 5c then eased back to 3c at 508 on shares worth $2.2 million. Its Australian rival Telstra also gained 4c to 670.

Brokers said Telecom appeared to be rising on a combination of improving sentiment about its long-term outlook and for the telco sector in general.

Takeover target Frucor also eased 4c to 226, an indication that Groupe Danone's $2.35 per share offer was still out of favour with Frucor shareholders.

Brokers were also closely watching recent market darling Briscoes, which has drifted off its recent high of 173 to its present 158. Today's drop of 5c was viewed as a spot of profit-taking.

AMP was up 20c to 2290 on low volumes after news yesterday that the company's profit outlook was on track.

Other rises included Pacific Retail Group, up 1c to 227, Warehouse up 1c to 675, Fisher & Paykel Healthcare up 4c to 1674, and F&P Appliances up 5c to 1010.

Forestry stock Carter Holt Harvey was enjoying the topside of a volatile price rise over the last two months, up 3c today to 177 on solid volumes.

Fletcher Forest ordinary shares topped the turnover by volume, its share price staying steady at 23.

Other falls included Tranz Rail down 5c to 395, Software of Excellence down 5c to 330 and Sky City down 1c to 624.

There were 21 rises and 14 falls on 74 stocks traded.

Meanwhile on Wall Street, growing bullishness about the computer industry helped push the blue-chip Dow Jones industrial average to its highest finish since late August.

The Dow climbed 98.74 points, or 0.98 per cent, to 10,172.14, according to the latest data, the highest finish for the Dow since Aug. 28. The Nasdaq composite jumped 64.98 points, or 3.28 per cent, to 2,044.23. It was the Nasdaq's first close above 2,000 since Dec. 18. The benchmark Standard & Poor's 500 index added 10.60 points, or 0.92 per cent, to 1,165.27.

- NZPA