NZ stocks: Shares close month with 5.6pc gain

The New Zealand sharemarket ended the calendar month up almost 17 points yesterday, topping off what has been one of its best Januarys since 1994.

"It was a very good performance for January. In essence there was more domestic activity coming from the buy side," ABN Amro head of institutional sales Nigel Scott said.

The market has added 5.6 per cent to its value since the start of the year with the benchmark top-40 index closing up 16.52 points at 2007.95.

The NZSE-10 also performed well yesterday, closing up 9.57 points at 895.64.

Total turnover was 39.63 million shares worth $138.37 million.

Telecom once again led the charge, adding 17c to $5.82 on turnover of 5.5 million shares worth $31.82 million. The stock has climbed steadily this week from a low of $5.35 on Friday. Its Australian counterpart, Telstra, did not do so well, slipping 13c to $8.75.

Contact emerged unscathed from Tuesday's much-awaited annual meeting in Auckland, with investors choosing to lay aside the more emotive issue of director remuneration, taking direction instead from the company's positive operational outlook.

"I personally didn't think anything negative came out on the operational side from the AGM and that is probably what the market was saying," Mr Scott said.

The stock closed up 9c at $2.84 on moderate turnover.

Mr Scott said "good mid-tier New Zealand domestic story stocks" had been well-supported yesterday.

These included Fisher & Paykel, up 5c at $7.95, Sky City up 10c at $8.90, Cavalier up 4c to $4.84, and Carter Holt up 2c at $1.58.

In all there were 45 rises and 52 falls among the 149 stocks traded. Fletcher Challenge stocks were all down after the company outlined the makeup of the boards for a planned split of the company into three, subject to shareholder and court approval.

Fletcher Building slipped 5c to $2.02, Forests was down 1c at 31c and Shell-Apache Corp takeover target Energy was down 2c at $8.98.

Current Fletcher Challenge chairman Roderick Deane is to chair the split-off Building division, current chief executive Michael Andrews is to chair the newly created technology company Rubicon, while professional company director Sir Dryden Spring is to chair Fletcher Forests, the company said.

The Warehouse also continued to fall on market speculation the company will announce poor December retail figures later this month.

"In a slightly tighter economy, retail is one of the first parts to become more competitive," Mr Scott said.

The stock has been hit hard by the hotting up of competition in the Australian market. German cut-price supermarket chain Aldi has also opened branches in Australia recently.

Warehouse shares closed down 7c at $5.48.

Genesis, which yesterday morning posted a small December-year profit of $723,000, remained unchanged at $7.20 following a recent run up in its share price as rumours circulated about good progress on testing of its psoriasis treatment, PVAC.

Air New Zealand A shares were down 2c at $1.60 while the Bs were also down 2c, at $2.10. Montana gained 4c to $4.04, but Nufarm was down 3c at $3.97.

Tranz Rail slipped 4c to $3.75.

NZ Refining was up a further 5c to $15.30.

Transport group Owens gained 3c to 85c after it announced on Tuesday its chief executive was stepping down for personal reasons.

Cadmus Technology was the biggest riser of the day with a 2c gain to 13c.

- NZPA