NZ stocks: Shares rise in afternoon as buyers return to market

6.40pm

The New Zealand sharemarket finished today's session nearly 10 points higher after a sluggish start was followed by brisker trade this afternoon.

At 5pm the benchmark NZSX-50 gross index was 9.56 points or 0.37 per cent higher at 2622.13, while the NZSX all capital index was 2.97 points or 0.34 per cent higher at 888.71.

After trading sideways this morning as interest rate concerns continued to weigh on investors, the top 50 flickered to life after lunch.

"There has been some portfolio buying coming in which has definitely turned this market around," Goldman Sachs JB Were institutional adviser Joe Gallagher said.

"I think you've just seen buyers step away from this market over the past few days," he said. But with overseas markets showing a more positive trend in recent days, Mr Gallagher said it appeared buyers had returned to the New Zealand market this afternoon.

However, he said trade today remained "flow-driven" with a lack of corporate news.

Market heavyweight Telecom finished 2c higher at 562. Contact Energy was up 12c at 590 on more speculation Australia's Origin Energy may be considering a bid for Edison Mission's 50.1 per cent stake in the company.

Among the second tier stocks Auckland International Airport was up 2c at 678, Carter Holt Harvey was up a cent at 207, Fletcher Building was unchanged at 450, Fisher & Paykel Appliances was down 6c to 464, Sky City was up 6c to 446, Sky TV down 3c to 542, and The Warehouse down a cent to 434.

Other stocks to move today included: Air NZ up a cent to 43, BayCorp Advantage up 2c to 303, Cavalier Corp down 2c to 488, Guinness Peat Group down 3c to 211, Infratil up 4c to 305, Nuplex up 7c to 495, Pyne Gould down 9c to 540, TollNZ -- formerly Tranz Rail -- up 4c to 155, Tower down 3c to 169, and TrustPower down 12c to 400 .

Total turnover was worth $80.17 million and there were 51 rises and 50 falls among the 143 stocks traded.

- NZPA