NZ stocks: Sharemarket gains despite distractions

5.59pm

The sharemarket continued to rise today, defying expectations of a quiet day amid the distractions of the Melbourne Cup as well as tonight's United States presidential race.

The benchmark NZSX-50 gross index climbed 21.67 points to 2853.43, while the NZSX-All capital index was up 7.3 points to 943.65. Total market turnover was worth $108.9 million, with 61 rises outpacing the 43 falls among the 158 stocks traded.

Barry Lindsay of First NZ Capital said the market had outperformed expectations.

"I would have to probably say it was a pretty sound performance given the background of a quiet Australian market with the Melbourne Cup and... hours away from the US presidential election and the uncertainties surrounding that," Mr Lindsay said.

Market leader Telecom gained 5c to 582 on turnover worth $40.9 million, which Mr Lindsay said suggested the market was expecting a decent first quarter profit announcement on Friday.

Infrastructure investor Infratil today reported a half year profit of $29.6m, more than double the $12.5m reported for the same period last yea r. Infratil said earnings contributions from TrustPower and Wellington Airport were up markedly. Infratil rose 6c to 320 on the news, while TrustPower gained 1c to 493.

Carpet manufacturer Feltex today reported a 79.8 per cent rise in first quarter profit to $4.4m, from $2.5m the same time last year. Shares in the company, which re-listed in June after an absence of nearly 20 years, were unchanged at 157. Feltex's competitor Cavalier fell 15c to 465.

Powerco slid 1c to 205 as the $2.15 per share takeover offer by Prime Infrastructure drew to a close at 5pm tod ay. Yesterday Prime said it had secured 80 per cent of Powerco's shares and was confident of gaining the additional 10 per cent necessary to spark a compulsory acquisition of all remaining shares.

Carter Holt Harvey was unchanged at 214c after it applied for Commerce Commission approval to buy Tenon's "structural" sawmill assets that are being considered for sale. The central North Island mills were valued between $123 million and $144 million by Grant Samuel in May.

Abano Healthcare Group fell 0.2c to 12c, after it today confirmed a share placement to Rect Funds Management (RFM). RFM paid $2.86 million for an initial placement of 10 per cent of Abano -- 22m shares issued at 13 cents per share toda y. Last week, Cullen Investments, the investment vehicle of entrepreneur Eric Watson, said it intended to sell down its 55 per cent stake in Abano.

Fisher & Paykel Healthcare added to recent gains, up 5c to 299, amounting to a 7 per cent gain in the past five trading days.

Nuplex lost 6c to 506. Mr Lindsay said the stock has been steadily losing ground since it spiked up 22c late last month after it announced the purchase of the Coatings Resins business of Akzo Nobel.

Other stocks on the move today included: Fletcher Building up 7c at 562, Contact Energy up 9c at 608, Sky City Entertainment up 8c at 460 and NGC up 2c at 309.

- NZPA