NZ stocks: Shares finish on firmer note after flat session

The New Zealand sharemarket finished on a firmer note today after a session where its benchmark indices tracked in mildly negative territory for the best part of the day despite considerable underlying activity.

The NZSX-50 gross index finished 6.52 points or 0.26 per cent higher at 2533.05, while the NZSX-40 ended 3.56 points or 0.16 per cent higher at 2290.18.

Forsyth Barr dealer Suzanne Kinnaird said: "It was slightly negative earlier on and it's picked up towards the later part of this afternoon".

Amro Craigs Equities operator Matt Willis said the indices' lack of upward movement earlier in the session masked a "reasonably active" market.

"Most stocks are trading on stock specific news rather than any direction in the market," he said.

"There is certainly some interesting stock specific news generating some reasonable sorts of volumes out there."

The market motored to its solid finish on late flourishes by second tier stocks Carter Holt Harvey and Contact Energy, Ms Kinnaird said.

Carter Holt finished 4c higher at 208c on continued speculation surrounding the soon to be announced sale of its tissue business.

Contact finished 7c higher at 524c, this morning it was reported potential buyers were lining up for Edison Mission's sale of assets including Contact. Speculation has also intensified that Australia Gas Light is about to launch a bid for Edison Mission's 51 per cent stake in Contact.

Market leader Telecom which slipped 4c earlier in the day recovered by the end of the session to finish 2c down at 579.



M r Willis said trade in Fletcher Building had been a recent highlight on the market. Today the company finished flat at 536c on turnover worth $20.81 million.

Comments last week from the company's chief executive Ralph Waters to institutions had struck a chord, he said.

"The market has been preoccupied by macro-economic events like falling migration and rising interest rates and drawing the conclusion of a downturn in construction and Fletcher Building."

Mr Waters had said the company was not unduly exposed to a downturn in residential construction.

Mr Willis said the company would "leverage the still strong non-residential building sector".

He said investors were also paying attention to wood processor Tenon as the company approached the Friday record date for the capital redistribution associated with its recently concluded forest asset sale. He said investors were now focused on the residual value of the company's assets once the capital payment had been made.

Stocks to move today included : Cavalier Corp up 10c to 480, Colonial Motor Co up 5c to 280, GRD up 15c to 210, Hellaby Holdings up 8c to 505, Independent Newspapers down 4c to 468, Mooring Systems up 15c to 375, Oceana Gold down 8c to 102, Promina up 6c to 417, Sanford down 10c to 480, Sky TV down 5c to 520, Steel & Tube down 6c to 377, Tower up 3c to 154, Tranz Rail down 3c to 140, TrustPower down 5c to 685, Waste Management up 5c to 430.

The market's total turnover today was worth $97.29 million with 58 rises and 43 falls among the 137 stocks traded.

- NZPA