NZ stocks: Shares end up broadly positive after interest rate hint

New Zealand's benchmark index for the sharemarket clambered back above the psychological 2000 mark today.

"There's more greens on the paddock today," said one broker, looking at the more broadly positive market today.

The NZSE-40 capital index was up 12.55 points, or 0.63 per cent, at 2001.18 on turnover worth $68 million. Wall Street also enjoyed a positive night, with the Dow Jones industrial average rising 0.6 per cent and the Nasdaq up 2.1 per cent.

One suggestion for the pick-up in interest after a lacklustre few sessions was a possible switch back to equities after the central bank flagged a possible easing of interest rates later in the year.

"There's been quite a strong bond rally and hello, people aren't getting much for their money and looking for yield," said Nigel Scott, retail equities adviser with ABN Amro Craigs Equities.

One possible recipient, said Mr Scott, was Fletcher Building which rose 11c to 343 on turnover worth $2.3 million.

Transport companies generally firmed, with Tranz Rail up 4c to 137, Mainfreight up 4c to 116 and Owens was steady at 98.

Owens, which has risen 12.6 per cent in the past two days, revealed it was close to selling its Hirepool operation for about $50 million.

Tower closed steady at 211 after rising as high as 217 during the day. The stock gained 6 per cent yesterday as speculation resurfaced that Guinness Peat Group was seeking a stake of up to 10 per cent in the recently troubled financial company.

F&P Healthcare was up 18c on 996, riding on the coat-tails of a good result by rival US firm Respironics. Despite a fall in second quarter profit, shares in the maker of medical equipment zoomed ahead 9 per cent after it said it was comfortable with analysts' profit forecasts.

Sky City Entertainment skimmed a new record of 880 before closing 5c down at 867. Analysts have put the stock's recent ascent down to a delayed reaction to the leak last month of confidential company documents that showed Sky was trading considerably above most analysts' forecasts.

The Securities Commission has begun an investigation of alleged insider trading involving a former employee of UBS Warburg. He allegedly obtained confidential management accounts of the casino operator and then offered the information to an institutional investor, which blew the whistle.

Ports of Auckland jumped 5c to 680 after the company said its December container volumes were up 11 per cent on a year ago.

Another strong performer, Scott Technology, gained 2c to 275 after hitting a fresh high of 285 earlier in the session. The company has secured new large orders in the US and Mexico.

Richmond gained 5c to 285 after its independent directors yesterday asked the Takeovers Panel to rule on a crucial waiver in the PPCS take-over offer.

They want to know if the clause giving PPCS the option of waiving the 90 per cent minimum acceptance condition breaches rule 25 of the code. If the waiver is allowed, then the 305/offer may yet have some life.

Among other movers, market leader Telecom shed a cent to 459 in good two-way trading worth $37.6 million, Auckland Airport was up 5c to 537, Air New Zealand was up 2c at 57, Carter Holt was up 1c at 181, Sky TV was up 10c to 375, helping its parent company INL up 11c to 323.

On the downside, AMP fell another 11c at 1050, and Michael Hill eased 10c to 615.

There were 63 rises and 30 falls among 131 stocks traded.

- NZPA