The sharemarket closed firmer despite further turbulence in the telecommunications sector.
"We had a pretty good day [Tuesday] in the face of most of the other markets which had profit warnings," Credit Suisse First Boston dealer David Price said.
"There was some portfolio buying which helped the market close up on the
day having been about 12 points lower at one point, led lower by Telecom."
The benchmark NZSE-40 closed up 4.26 points at 2059.04 on turnover worth $68 million - with Telecom accounting for $26 million of that.
Monday's profit warning by Australian telco Telstra and a further warning overnight from Finnish mobile maker Nokia sent Telecom spinning as low as $5.44 in morning trade, but it recovered to close down 7c at $5.51.
Nokia, the world's number one mobile phone maker issued a surprise profit warning overnight, saying weak global mobile phone demand slashed its expectations for second-quarter earnings and sales.
The announcement wiped 37 billion euros ($NZ76 billion) off the company's market value and sent shock waves across European and US markets already reeling from fears of lower earnings.
Elsewhere in the market, courier-freight company Mainfreight took a battering after announcing its annual result had once again been mauled by a poor performance from its Australian operations.
The company said that in the March year its recently acquired K&S Express, now Mainfreight Distribution, dragged its net profit down 73 per cent to $2.4 million.
Investors punished Mainfreight by sending its shares down 10c to $1.05.
Richmond shares also took a dive as its rival PPCS appeared to have won the first round in the battle for control of the Hawkes Bay meat processor. Active Equities said it would sell 49 per cent of its subsidiary Hawkes Bay Meat to PPCS, based on a valuation of Richmond shares at $3.65.
Under the deal PPCS would double its stake in Richmond to 34 per cent from a previous 16.75 per cent.
Shares in Richmond ended down 40c at $2.65 on light volume.
Carpet manufacturer Cavalier closed down 4c at $5.56 after it received High Court approval to return $25 million in capital to shareholders.
Cavalier will cancel one in every eight shares, paying $5.60 for every cancelled share or a total of $25 million.
Air New Zealand A shares ended steady at $1.10, while its Bs ended down 2c at $1.45.
Winemaker Montana closed at $4.80 after an NZSE market surveillance panel asked its independent directors to impose a media blackout on any comments over Australasian brewer Lion Nathan's disputed stake in the company.
Lion, which was found to have defaulted on NZSE rules when it bought a parcel of Montana shares in February, closed up 5c at $5.10.
Fisher & Paykel closed up 12c at $11.37.
- NZPA
The sharemarket closed firmer despite further turbulence in the telecommunications sector.
"We had a pretty good day [Tuesday] in the face of most of the other markets which had profit warnings," Credit Suisse First Boston dealer David Price said.
"There was some portfolio buying which helped the market close up on the
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