NZ stocks: Telecom overcomes early profit-taking

Telecom yesterday shrugged off early profit-taking to close higher and help the NZSE capital index post its sixth consecutive gain to finish 3.77 points up at 1972.27. This index has now risen 3.7 per cent this year.

Telecom dominated trade, accounting for $46 million of the total turnover of $110 million. It closed 7c up at $5.56 and is now 23.5 per cent above its $4.50 level at the start of the year.

The top 10 index rose 2.01 points to 877.00 and the small stocks' index 30.28 points to 5184.77.

Fletcher Building rose 9c to $2.26, after announcing a restructuring of its capital notes. Fletcher Energy fell 5c to $8.62 on a turnover of $32.7 million, and Fletcher Forests lost 2c to 32c.

Restaurant Brands gained 6c to $1.37, despite the 25 per cent fall in annual profit that it announced on Wednesday.

The Warehouse fell 11c to $5.69 and is now well below its high of $6.78 set in mid-November. Brokers said the price reflected concern about the company's Christmas trading and the sagging retail environment in Australia.

Carter Holt Harvey fell 2c to $1.62, continuing its poor sharemarket performance. Softening prices and weak demand are expected to hit the third-quarter earnings that the company is due to report next week. Analysts are predicting a net profit of around $56 million for the period, compared with $89 million previously.

Sky TV shrugged-off worries about its losing rights to cover the All Blacks' tour later this year, to rise 9c to $3.29.

Brierley Investments fell 1c to 31c. Brierley's 46 per cent-owned British hotel chain, Thistle Hotels, reported an 8 per cent increase in turnover for the December year.

Thinly traded Colonial Motors rose 22c to $3.02. Among other gains AMP rose 5c to $23.05; GDC, 20c to $3.70; Genesis, 4c to $6.54; Lyttelton, 4c to $1.75; Tower, 5c to $5.20; Tranz Rail, 10c to $3.72; and Westpac NZ, 15c to $14.55.

Baycorp lost 10c to $12.50 and Lion Nathan 2c to $4.98. There were 55 rises and 38 falls among the 142 stocks traded.

- NZPA