NZ stocks: Strong Telecom showing buoys market

The sharemarket bounced back from its low for the year today, buoyed by strong interest in the bellwether Telecom and increased activity from offshore buyers.

The NZSX-50 gross index closed up 16.23 points, or 0.67 per cent, at 2434.79, while the NZSX 40 capital index finished up 14.03 points at 2246.77.

The rise was on turnover of 35.6 million worth $97.8 million, with 42 rises and 51 falls among the 144 stocks traded.

Brokers said there were more international buyers in the market today after the US came back from the President's Day public holiday.

"There's just been some better flow around today after some reasonably quiet days," said Campbell Stuart of UBS Warburg.

Market leader Telecom closed up 10c at 562, with $40.1 million of its shares changing hands.

Mr Stuart said overnight news from the United States that Cingular Wireless had acquired AT&T Wireless Services for US$41 billion ($59 billion) had stimulated interest in the telecoms sector.

Australian telecommunications provider, Telstra, was also up, rising 7c to 532.

Sky City rose 7c to 452. Goldman Sachs JB Were broker Murray Rutherford, said the bounce came as analysts became more comfortable with the company's acquisition in Darwin.

Gas supplier NGC slipped 4c to 220, possible as a result of the costs of restoring gas supply to the Hawke's Bay, disrupted by this week's storm.

Fletcher Building rose 4c to 408. Mr Rutherford said the company's order book was reported to be very strong.

Turners Auctions shares continued to dive lower after it yesterday shed 30c when it issued its annual result.

In the December 2003 year, Turners profit dropped by 4.7 per cent to $2.83 million as a result of its move into Canada.

Today, its shares were down a further 35c to 405, a five-month low. It has slumped 15 per cent in two days.

Provenco gained 2c to 59c after yesterday confirming it had signed a $21 million deal to supply Malaysian oil giant Petronas Dagangan Berhad with outdoor payment terminals.

Exchange operator NZX continues to rise and rise. It gained another 32c to 762 today to bring its gains this year to over 35 per cent. Last week it posted a full-year profit of $2.9 million.

Contract Energy, under pressure this month because of doubts about what its cornerstone shareholder Edison Mission will do with its holding, gained 2c to 508. Yesterday it reported a 49 per cent rise in first quarter profit.

Other stocks on the move included F&P Healthcare, down 15 c at 1215, Ports of Auckland down 5c to 740, Waste Management down 2c at 419, Air New Zealand up 1c at 042, Carter Holt Harvey up 1c at 190, BIL International up 1c at 66, Northland Port fell 7c to 295, Freightways fell 6c to 236, DB fell 10c to 805 while Lion Nathan rose 9c at 675.

- NZPA