NZ stocks: Shares continue to rise on modest trade

The New Zealand sharemarket extended its recent string of modest gains today on rises by a number of top stocks in trade dominated by solid turnover in market leader Telecom.

By the 5pm close the benchmark NZSX-50 gross index was up 10.05 points or 0.41 per cent to 2473.18, while the NZSX-40 capital index was up 8.25 points or 3.7 per cent to 2262.25. Turnover was worth $73.25 million, with 61 rises and 35 falls among 146 stocks traded.

Goldman Sachs JB Were institutional advisor Chris Swasbrook said volume was generally light across the board outside of the $31.8 million worth of Telecom shares traded.

Telecom finished today's session a cent lower at 564 on "solid two way demand", Mr Swasbrook said.

"Sellers are taking a view on the currency, buyers are taking a view on value basis relative to Telstra."

TelstraClear, the New Zealand subsidiary of Australia's 51.05 per cent state-owned incumbent telco Telstra was down 6c to 534 today.

Australia's communications minister Daryl Williams today re-introduced a bill into the House of Representatives which would allow the government to sell its remaining stake in Telstra.

Meanwhile Tower Group continued its recent climb today on rumours it is a takeover target for fellow insurer Promina. Tower was up 3c to 155. Promina was up 4c to 405.

In the same sector, AMP shares rose 16c to 561 despite the company reporting a A$5.54 billion ($6.25 billion) full year loss -- Australia's second-biggest corporate loss.

The result -- in line with market expectations -- was dominated by the heavy losses related to its spun-off British life and funds businesses. AMP chief executive Andrew Mohl said the result marked a new start for the 150-year-old company.

Elsewhere, courier company Freightways was sold off by 6c to 210 after news today New Zealand Post was in discussions with the international courier and logistics company DHL about a possible joint venture here.

Wood processor Carter Holt Harvey fell 3c to 202 today on profit taking following its 11c run up yesterday as speculation continued about the sale price of its tissue unit.

Investment company Guinness Peat Group was 5c to 199. Mr Swasbrook said the snapshot of the company's balance sheet released with its recent result showed "quite substantial unrealised gains".

"The outlook commentary with regard to their investment activity was also quite positive," he said.

Casino operator Sky City continued to bounce from its recent post-result sell-off, rising 12c to 451.

Restaurant Brands operator of the KFC, Pizza Hut and Starbucks brands rose 2c to 122 after posting sales of $69.9 million for the 12 weeks to February 23, up 1.8 per cent on the same period last year.

A number of other top stock made good gains today including: Auckland International Airport up 8c to 665, BayCorp Advantage up 9c to 329, Contact Energy up 4c to 516, Fisher & Paykel Appliances up 10c to 390, Fisher & Paykel Healthcare up 5c to 1165, and Ports of Auckland up 10c to 720.

- NZPA