NZ stocks: Telecom bounces off lows

The sharemarket edged up slightly yesterday, largely on gains by market bellwether Telecom.

The NZSE-40 capital index closed up 3.95 points, or 0.2 per cent, at 2034.73 on turnover of 22.6 million shares worth $47 million. Decliners outpaced advancers 46 to 44 from 132 stocks traded.

A broker said the "skinny" volume reflected the influence of typically slow midsummer activity in the US and investors having committed themselves to positions ahead of the local earnings season.

Forest products company Carter Holt Harvey kicked off the earnings season after the close of trading with a bigger-than-expected first quarter loss of $34 million, down sharply from a $90 million profit a year earlier.

One-time charges of $25 million from mothballing the Mataura paper mill and the Mt Burr sawmill contributed to the loss.

Shares of Carter Holt Harvey closed up 1c at $1.72.

Telecom ended up 7c at $5.14 after slipping below $5 earlier in the session for the second straight day.

Sentiment towards the stock has recently been affected by volatility in the telecommunications sector globally.

Greg Arnott, of DF Mainland, said Telecom had renewed retail buying interest yesterday, largely due to announced plans to expand the New Zealand text messaging services.

"The stock's probably been oversold in the last few days," Mr Arnott said. "It's had a terrible session in the last few weeks, and that resurgence today might suggest we've seen the bottom around here at this $5 level."

Australian telco Telstra continued its slide, closing down 13c at $6.39.

Fletcher Building, which on Monday announced with Brierley Investments the sale of a joint-venture quarry in Auckland for $38 million, closed up 2c at $2.61.

Fletcher Building is selling non-core assets as it refocuses following separation earlier this year from its former parent Fletcher Challenge.

Ports of Auckland gave up 6c to close at $5.80.

Contact Energy climbed 3c to $3.20 as it basked in a favourable market glow.

Brewer Lion Nathan was down 2c at $5.50 after regulators struck a second blow in as many days against its attempt to regain majority control of New Zealand's premier winemaker Montana.

Montana closed down 7c at $4.50.

Profit-taking saw appliance and medical equipment manufacturer Fisher & Paykel shed 35c to $12.65.

Enthusiasm for the company's plan to split its appliance and healthcare divisions into separate entities and list the healthcare division on the Nasdaq later this year has pushed the stock over the $13 mark in recent sessions.

Air New Zealand A shares lost 2c to $1.05, pay TV operator Sky TV fell 5c to $3.20, Auckland Airport was down 4c at $3.50, and Infratil shed 4c to $1.54 after its annual meeting on Monday. Sky City rose 6c to $11.80 and Tranz Rail was up 5c at $4.07.

* The New Zealand dollar closed easier yesterday, again stuck in a tight range in light volumes and simply tailing the aussie as the present dull phase of trading persists.

It ended at 40.63USc.

- NZPA