NZ stocks: Telecom recovery nudges NZ market into positive

Firmness in market leader Telecom nudged the sharemarket into positive territory in morning trading.

The benchmark NZSX-50 gross index was up 2.32 points to 2512.62 while the NZSX-40 capital was up 3.39 points at 2290.15.

Despite negative publicity over Telecom's billing and the company struggling to keep up with unexpected demand on a new offer on its calling service, it rose 3c to 584 by 11.30am.

Brokers said Telecom was up on a good showing on Wall Street and New Zealand's lower dollar making the proxy stock for the New Zealand market cheaper.

Turnover in Telecom was nearly half of the market's $38 million total.

"We've been remarkably resilient over the last week or so when Wall St and other markets have been heading south, so we weren't likley to bounce strongly because we didn't have the declines," said Barry Lindsay of First NZ Capital.

Infratil shares rose 6c to 260 on news that it has negotiated a lower price to buy the 23 per cent of Glasgow airport that it does not already own.

Earlier in the week, Infratil announced results below expectation for Glasgow Prestwick Holdings Ltd for the March year. Infratil shares fell 16c on the news.

Mr Lindsay said the announcement was quite significant.

"In the scheme of things a reasonably dramatic turn of events in so far that price is agreed, performance has suffered and now price has been renegotiated.

"I think Infratil shareholders will feel that justice has been done"

NZ Refining, expected to be the beneficiary of higher margins on petrol, was one of the few stocks to rise more more than a few cents. It was up 21c to 1710.

DB Group was up 10c to 815 and ANZ Bank was up 18c to 2190.

Metlifecare fell 9c to 191.

Williams & Kettle was unchanged on 280 after reporting a 4 per cent rise in half year net profit and a higher dividend payout.

Among other movers, Fisher & Paykel Healthcare continued its rise, up 7c to 1170.

Fisher & Paykel Appliances lost 5c to 445.

Other movers included: Independent Newspapers, down 5c to 465, Warehouse, down 4c to 44, Steel & Tube, up 6c at 386, Contact Energy, down 5c to 513 and Sky TV, up 5c to 515.

Sky City continued its yo-yo behaviour of this month, rising 3c to 440.

In all, there were 40 stocks up and 22 down among the 102 traded.

US stocks jumped as solid earnings from companies like FedEx Corp coupled with a benign inflation report, reassured investors that the economic recovery is still on track.

The Dow Jones industrial average closed up 117.92 points, or 1.16 per cent, at 10,302.59. The Standard & Poor's 500 Index finished up 13.08 points, or 1.18 per cent, at 1123.78. The technology-focused Nasdaq Composite Index rose 33.56 points, or 1.73 per cent, to 1976.65.

- NZPA