The New Zealand stock market had a positive day yesterday, with reasonable volumes and interest focusing on the larger quality stocks.
The NZSE-40 capital index ended up 14.07 points at 1923.63. Smaller stocks were easier, with the NZSE-SCI capital index dropping 6.91 points to 5122.07.
Turnover of 35.63 million shares was worth
$90.50 million. Fletcher Energy and Telecom were again responsible for much of that but other big issues also featured. Falls just beat rises 50 to 49 among the 137 stocks traded.
"Our market is undervalued and is presenting retail investors with great yield opportunities," Craig and Co's Matt Willis said.
Fletcher Building, for example, jumped 11c to $2.08, offering yields around 12 per cent. And Telecom, the yield stock which cut dividends in the process of turning itself into a growth play, has seen its price fall so far in recent months that it once again offers high yields. It finished up 8c at $4.98, and looked cheap, said Mr Willis.
He said quality defensive stocks were popular, and issues such as Auckland Airport, which rose 5c to $3.21, had a lack of sellers.
"For the time being I don't see much downside to our market," Mr Willis said.
Among stocks with notable moves, Sky TV, a beneficiary of a stronger local dollar, jumped 19c to $3.30. Air NZ, which also has a lot of costs denominated in US dollars, saw its A shares rise 2c to $1.60 but the Bs, which foreigners can own, eased 1c to $2.25.
Former state-owned enterprise Contact Energy finished up 3c at $2.67. Mr Willis discounted comments by Green Party co-leader Jeanette Fitzsimons that the Government should try to buy back Edison Mission's 40 per cent stake. Edison's American parent is embroiled in the California utilities' strife, but Mr Willis said that if it needed to sell assets the Contact stake would be offloaded in a trade sale at a premium, which would also be good for lesser shareholders.
Elsewhere, Brierley gave up a cent to 30c, Montana rose 9c to $3.94, the Fletcher Forests head shares were up 1c to 31c and the preference stock rose 2c to 32c.
- NZPA
