NZ Stocks: Telecom, F&P lift market

Telecom's 13c rise boosted the sharemarket into positive territory to finish off the week.

Fisher & Paykel also continued its upward path, gaining 45c to $11.70.

The NZSE-40 capital index closed up 12 points, or 0.59 per cent, at 2050.00 and the small companies' NZSE-SCI capital index was up 18.10 points at 5437.22.

Low turnover of 23.42 million valued at $52.03 million was topped by Telecom's $15.20 million, followed by Sky City with $3.12 million.

There were 53 rises and 36 falls among the 133 stocks traded.

Macquarie Equities' Nathan Lewis said it had been a quiet day with very few leads.

The main corporate news of the day was Natural Gas Corp's warning it expects a $280-$310 million loss for the June year.

The company, owned 66 per cent by the Australian Gas Light Co and which runs On Energy, the country's largest electricity retailer, also said it was in talks with state-owned utility Meridian regarding the sale of On Energy's Christchurch business.

AGL's own shares have taken a hammering. The company halted trade in them on Thursday after they hit a 14 month low before the announcement.

NGC shares fell to a record low of 85c shortly after the opening but recovered to close down 1c at 91c.

"They spent most of the day trading around 87/88c level and rallied fairly hard in the last half hour - people bargain hunting," Mr Lewis said.

"There was talk around that the lower the stock goes the higher the chance that AGL might take them out.

"They own 66 per cent already and it's getting cheaper and cheaper for them to buy the rest of it."

But another analyst suggested AGL would not make a move to increase its stake, because of the amount of money NGC was losing and the fact that AGL already controlled the board.

Other companies in the energy sector did not fare much better, Contact Energy losing 5c to 284 and TrustPower 6c to 315.

But Powerco, the country's third-largest energy distribution company, gained 2c to $1.77 after rating agency Standard & Poor's affirmed its A-minus long-term and A-2 short-term corporate credit.

Telecom gained 13c to $5.53 and casino operator Sky City continued to rise, gaining 10c to close at $11.25.

Ports of Auckland lost 10c to $5.70 as up to 250 Auckland wharfies went on strike.

Pay television operator Sky TV closed down 7c at $3.38, and part owner INL lost 5c to $3.70. INL journalists continued their industrial action yesterday, with 75 staff at the Christchurch Press on strike for the second day.

Air NZ B shares gained 2c to $1.35. Baycorp 30c to $12.65 and Carter Holt Harvey 2c to $1.71. Telstra rose 9c to $6.89 after its poor run of late.

Tranz Rail lost ground made on Thursday on a single crossing at $3.90, falling 21c to $3.72. News on the sale of Tranz Rail's passenger network, Tranz Scenic, is expected soon.

- NZPA