MARKET CLOSE: Telecom retreats from 11-month high

Tuesday 25th January 2011

Telecom shares retreated from an earlier 11-month high and the New Zealand sharemarket turned away from a strong start as the initial boost from a good showing by US blue chips faded.

The benchmark NZX-50 index closed up 6.41 points at 3359.07, having edged down less than 1 point yesterday.

Telecom (NZX: TEL ) gained 1c to $2.32 earlier in the session, but closed unchanged at $2.31.

Fletcher Building (NZX: FBU ) held onto a 9c gain to close at $7.90, but Contact Energy (NZX: CEN ) closed down a cent at $6.25, retreating from a session high of $6.30.

Among other blue chips, Sky TV (NZX: SKT ) was up 9c at $5.30, and Fisher & Paykel Healthcare (NZX: FPH ) rose 1c to $3.20, but entertainment company Sky City (NZX: SKC ) was down 4c at $3.23 and Auckland Airport (NZX: AIA ) shed 1c to $2.24.

Gold miner OceanaGold (NZX: OGC ) slipped 8c to $3.60 after announcing it was taking full control of its Reefton mine from April, assuming mining operations and maintenance from Stracon Mining.

Infrastructure investor Infratil (NZX: IFT ) was down 1c at $192, while network company Vector (NZX: VCT ) gained 1c to $2.48.

Air New Zealand continued to benefit from last week's news that it has bought a 15% stake in Australian-based rival Virgin Blue, a move judged generally positive for the airline by credit rating agency Moody's.

Air NZ (NZX: AIR ) shares rose 3c to $1.45.

Discount retailer The Warehouse (NZX: WHS ) was up 6c at $3.68, adventure gear retailer Kathmandu (NZX: KMD ) was up 6c at $2.16, carpet maker Cavalier (NZX: CAV ) was up 6c at $3.24, and freight company Mainfreight (NZX: MFT ) hit a four-year high of $8.15, up 13c.

Fast food operator Restaurant Brands (NZX: RBD ) fell 7c to $2.44, NZ Refining (NZX: NZR ) was down 10c at $4.59, and Steel & Tube (NZX: STU ) lost 3c to $2.27.

Among dual-listed stocks, Telstra (NZX: TLS ) was up 9c at $3.70, AMP (NZX: AMP ) gained 8c to $6.70, ANZ (NZX: ANZ ) jumped 32c to $30.92 and Westpac (NZX: WBC ) was up 35c at $29.95.

Australia's S&P/ASX 200 Index was up 23 points, or half a percent, at 4810.

In the United States, Wall Street resumed its rally, ending higher on gains by tech and natural resources shares as investors see stocks regaining the momentum lost last week.

NZPA

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