NZ stocks: Sharemarket shrugs off Monday blues

6.00pm

The sharemarket today shrugged off its normal Monday blues to start the week on a firm note, helped by the recent softness in the New Zealand dollar.

The benchmark NZSX-50 gross index gained 19.41 points to a two week closing high of 2831.76, while the NZSX-All capital index rose 5.09 points to 936.32.

Rises outnumbered falls 78 to 30 among the 159 stocks traded today.

Total market turnover of $84.4 million was again dominated by top stock Telecom, which clocked up turnover worth $34.2 million.

The telco giant was unchanged at 577 today, in the face of an extensive new advertising campaign by competitor TelstraClear for its extended line rental reach. Telstra gained 3c to 508.

Grant Williamson of Hamilton Hindin Greene said the recent correction in the kiwi dollar against both the US and aussie dollars had brought buyers back into the local sharemarket, "... in particular the companies that have exposure to those other economies," he said.

Companies to benefit from the softer New Zealand currency included: GPG which has most of its assets overseas, up 3c to 211; and Fletcher Building, which has a lot of exposure to the Australian market, up 10c to 555. Dual-listed Australian companies also fared well today, with APN News & Media up 33c to 529, and the banks also notching up gains, with ANZ rising 50c to 2250, Westpac up 25c to 1975 and AMP up 4c to 690.

Provenco surged 10c, or 16.4 per cent, to 71c, after it today announced it had won a contract to supply "Eftpos at the pump" terminals for Shell's retail service station network within the Asia Pacific region. The total value of the contract depends on how many terminals Shell orders, but has a maximum value of around US$9 million ($13.3 million).

Urbus Properties lost 2c to 105. The company said today it had purchased a property in Palmerston North, currently leased by the retailer Briscoes. got $3.425 million.

Meanwhile, the Briscoe Group rose 1c to 139 after it announced its bid to become the franchisor for the 38-store Stirling Sports retail chain. Briscoe said it hoped a deal could be concluded by mid November.

Powerco lost 4c to 206, ahead of tomorrow's closure of the controversial $2.15 per share takeover offer by Australia's Prime Infrastructure. Prime was reported to have about 60 per cent acceptances by late last week, and was positive about reaching the 90 per cent threshold which would spark a compulsory acquisition of the remaining Powerco shares.

New Zealand Oil & Gas continued to climb, following confirmation last Friday its Tui area oil fields in the offshore Taranaki basin were suitable for commercial development. NZOG hoped to produce oil from 2006. Shares in the company rose 3c, or 3.33 per cent today, to 93c.

Other stocks on the move today included: Auckland International Airport up 12c at 730, Carter Holt Harvey down 1c at 214, Contact Energy up 2c at 599 and NZX down 11c at 730.

- NZPA