NZ stocks: Telecom helps shares tick upwards

The New Zealand sharemarket proved relatively busy ahead of the Christmas break, although much of the activity revolved around Telecom.

By 5pm the NZSX-50 gross index was 10.56 points or 0.43 per cent higher at 2417.37, while the NZSX-40 capital index was up 10.41 points or 0.46 per cent at 2246.23.

Falls outnumbered rises 47 to 35 on 134 stocks traded, with turnover totalling $63.4 million.

Trading had been fairly active for the time of year, not only in equities but also on the debt market today, said Greenslades director John Elsom.

"I suppose we're starting to see a lot of positions closed out before the end of the year. A lot of brokers will be cleaning their books up on behalf of their clients," he said.

Late in the afternoon there was "some spirited buying" in Telecom, after a regulatory decision that Telecom should open up its "local loop network" to high-speed internet rivals.

The stock provided more than half the total turnover, rising 5c to 525 on $31 million turnover.

Mr Elsom said one broker had been "particularly aggressive" in buying the stock which, because of its heavy weighting on the index, tended to mirror wider economic and market conditions.

He said it looked as though the market would end the year on a high note. Tomorrow the market will trade only for a half day and resume on December 29.

Other major stocks included Carter Holt Harvey up 1c at 185, Contact Energy up 3c at 543, Fletcher Building up 3c to 412, and Fisher & Paykel Healthcare up 16c to 1256 on low turnover.

The Warehouse rebounded from a selling streak earlier in the day, rising 4c to 500.

Listed hire company Hirequip was up 2c at 92 after announcing it had bought central North Island company Ready Hire Ltd for $21.2 million, and had conditionally agreed to sell its 30 per cent stake in the Northwood Supa Centa for an expected profit of $3 million.

Genesis Research nosedived 19c or nearly 16 per cent to 101 after announcing that it was abandoning the development of its PVAC psoriasis treatment.

Trials of the treatment, which largely driven the fortunes of Genesis' share price, shows the drug did not statistically improve the condition of patients above those on placebo treatments.

Last week Genesis announced it was spinning off its plant science division into a standalone company -- AgriGenesis Biosciences, to make clear to investors that it was more than a one-product company.

Tranz Rail continued to subside this morning after Toll Holdings' extended takeover offer ended yesterday. The rail operator was 4c lower at 161.

Sky TV was up 4c at 537 on reasonable volume, and its parent INL gained 3c to 495 as the company announced that it would be seeking court approval to make a $340 million capital return to shareholders.

Waste Management rose 7c to a year high of 422. Mr Elsom said the stock had been tipped as one to watch next year in several brokerage tip sheets.

Others to move included Ports of Auckland up 2c to 782, Port of Tauranga down a cent to 429, NZX down 6c at 560, Turners Auctions up 10c to 470, Kirkcaldies down 10c to 320, and Repco down 6c to 283.

Offshore, New York's Dow Jones industrial average posted its fifth straight day of gains yesterday, adding 30 points to 10,308. The broader Standard & Poor's 500 Index rose 0.73 of a point to 1089, while the technology-laden Nasdaq Composite Index eased 3 points to 1948.

- NZPA