NZ stocks: Telecom buy up leads market to pre-holiday high

2.00pm

The New Zealand sharemarket ended its Christmas Eve half day session on a new high as market leader Telecom surged on yesterday's news of a favourable regulatory decision from the Commerce Commission.

By the 12.30pm close the NZSX-50 gross index was up 16.77 points or 0.69 per cent at 2434.14, while the NZSX-40 capital index was 16.35 points or 0.73 per cent higher at 2262.58.

Total turnover was $58.51 million with $40.45 million being trade in Telecom shares.

Telecom, which carries a 28 per cent weighting in the NZSX-50, finished up 8c at 533.

Yesterday the Commerce Commission, in its final report on the issue, recommended a far more Telecom-friendly form of regulation to encourage competition, lower prices and increased uptake in the broadband internet market.

The commission decided against "local loop unbundling" which would have left Telecom open to increased competition in the broadband market and the far more lucrative voice market.

First NZ Capital broker James Snell said the ensuing buying interest in the telecommunications company was the market's sole feature in the quiet half day session.

Mr Snell said Telecom's share price yesterday "probably should have reacted a little bit more", to the news.

Nevertheless he said today's move was positive, "and it looks like there's some reasonable buying out there".

Elsewhere though, he said there was little to comment on. "Looking through volumes and price movements, it's all pretty light," he said.

Vending Technologies shares were up 6c to 104 after it said today it had reached an out of court settlement with Wurlitzer Pty, one of its vending machine suppliers.

In a statement to the market, VTL also said it had acquired Belgian company New Distribution Systems NV, which will help its product distribution in Europe.

Ports of Auckland continued to recover from news last week that it was to lose substantial business from dairy exporter Fonterra. The stock ended up 6c at 788.

Among second tier stocks, Carter Holt Harvey ended 3c higher at 188, and Fletcher Building up 3c at 415.

Genesis Research was up a cent at 102. Yesterday the stock nose-dived 19c or nearly 16 per cent to 101 after announcing that it was abandoning the development of its PVAC psoriasis treatment.

Among other stocks to move by the session's 12.30pm close were: Hellaby Holdings up 8c at 508, Infratil down 4c at 280, Software of Excellence up 28c to 179, Tranz Rail was down a cent at 160, the Warehouse up 4c at 504 and Waste Management was up 5c at 427.

Rises outnumbered falls 66 to 19 on 127 stocks traded.

On overseas markets yesterday, New York's Dow Jones industrial average eased 23.92 points to 10,314.08. The Standard & Poor's 500 Index rose 0.61 points to 1093.55. The Nasdaq Composite Index added 6.90 points to 1962.70.

In London, the benchmark FTSE 100 index ended 16.9 points or 0.38 per cent higher at 4440.9 points, notching up its highest close since August 2002 for a third straight session.

In Frankfurt, the DAX index ended at 3903.34 points, up 26.4 or 0.68 per cent, and in Tokyo, the Japanese share market was closed for the Emperor's birthday and public holiday.

- NZPA