NZ stocks: Trading hits 'purple patch'

The New Zealand sharemarket closed up more than 1 per cent on the back of positive moves offshore.

The benchmark NZSX-50 gross index closed up 26.64 points, or 1.24 per cent, at 2167.15. Turnover was moderate with 29.15 million stocks valued at $72.70 million.

Markets around the region were on the rise today, with Japan's Nikkei average up over 2 per cent at a six-month peak and Australia up more than 1 per cent following on from the Dow Jones' year high overnight.

ABN Amro Craigs retail equities adviser Nigel Scott said the market was finally reacting positively to good news.

"An interesting day. When stocks cover their dividends that gives you a pretty clear indication people are buying and holding, they're not looking at exiting at this stage."

Fisher & Paykel Healthcare went ex-dividend 40c per share yesterday while F&P Appliances went ex-dividend 27cps. Both stocks made up ground today, with F&P Healthcare up 21c at 1146 and Appliances up a whopping 70c at a fresh high of 1345, albeit on light turnover.

"That also gives an indication that people are prepared to pay up, so they have a bit more confidence sitting around the marketplace on the back of some pretty stellar performances in offshore markets," Mr Scott said.

"Whether we'll maintain these levels - at this stage the markets seem to be going through a bit of a purple patch, they've snuck up on people."

Fletcher Challenge Forests closed up 2c at 112, although the stock hit a high during the day of 118, and its preference shares were up 4c at 113. It was "not a massive follow through" on yesterday's news of the company's intention to sell its entire forest estate, Mr Scott said.

Shareholder Rubicon was down 1c at 72.

Market leader Telecom was up 10c at 520 on the back of good performances from telecommunications stocks overseas, and retail giant The Warehouse gained 22c to 492.

"The market's giving The Warehouse a bit of breathing space while they look at some of the questions, and it continues in response to a very good broker's report in the last week or two," he said.

The Warehouse chief executive Greg Muir steps down at the end of July, and the company still faces challenges in cracking the Australian market.

Auckland International Airport was up 4c at 587, Fletcher Building rose 1c to 358, Air New Zealand gained 1c to 54, AMP was up 9c at 602, and Contact Energy rose 6c to 491 after hitting a fresh high of 494 during the day.

Among other stocks, Cavalier was up 9c at 485, Genesis Research rose 2c to 128, Hellaby Holdings was up 8c at 408, Ports of Auckland was up 6c at 756, Sky City Leisure rose 10c to 125, and Skellmax rose 1c to 117.

On the down side, takeover target Tranz Rail was down 1c at 89, Sky City lost 1c to 905, News & Media preference shares shed 5c to 785, Hallenstein Glassons was down 2c at 295 and BIL International lost 1c to 74.

There were 82 rises and 20 falls on the 135 stocks traded.

On Wall St, the Dow Jones industrial average rose 199.6 points, or 2.19 per cent, to 9316.72; the S&P 500 gained 22.15 points, or 2.24 per cent, to 1010.76, near a 12-month high; and the Nasdaq Composite Index climbed 40.83 points, or 2.51 per cent, to 1667.32.

- NZPA