MARKET CLOSE: Telecom recovery helps boost sharemarket

Tuesday 1st March 2011

The New Zealand sharemarket built on its early modest rise, boosted by reasonable gains in some stocks including a strong recovery by market leader Telecom.

The benchmark NZX-50 index closed up 13.87 points, or 0.4 percent, at 3384.39, having ended up 6.6 points yesterday.

Telecom (NZX: TEL ) rose 3%, or 7c, to a week high of $2.15. Yesterday, the stock hit $2.06, its lowest point since early November.

Fletcher Building (NZX: FBU ) fell 3c to $8.74, after a shareholder and member of the founding family of Australia's Crane Group urged fellow investors to reject Fletcher's takeover offer ahead of a March 11 bid deadline.

Peter Crane, a 1.5% shareholder, said in a statement that the best outcome would be for investors to vote no and push for a new board at Crane.

Among other blue chips, Contact Energy (NZX: CEN ) rose 2c to $6.17, Auckland Airport (NZX: AIA ) was down a cent at $2.21, and casino company Sky City (NZX: SKC ) was up 5c at $3.30. Sky TV (NZX: SKT ) gained 10c to $5.48, while Infratil (NZX: IFT ) was a cent higher at $1.95.

Market operator NZX (NZX: NZX ) rose 12c, or 7%, to a nine-month high of $1.82. The stock added to its 9c jump yesterday, when it signalled growth both in its traditional and non-traditional businesses and increases in dividends.

Children's clothing company Pumpkin Patch (NZX: PPL ) fell 6c to $1.31 as trading conditions remained tough.

The company reported a 43.5% fall in half year net profit to $8.1 million, and a 10% decline in revenue as lacklustre trading environment resulted in lower sales in its key Australian and New Zealand markets. The interim dividend was also cut, to 3c per share from 4.5cps a year before.

Fellow clothing retailer Hallenstein Glasson (NZX: HLG ) was down 3c at $3.60.

Restaurant Brands (NZX: RBD ) lost 2c to $2.40, Abano Healthcare (NZX: ABA ) fell 10c to $4.60 and Rakon (NZX: RAK ) was down 2c at $1.06.

The Warehouse (NZX: WHS ) rose a cent to $3.45, Mainfreight (NZX: MFT ) was up 6c at 48.14, and carpetmaker Cavalier Corp (NZX: CAV ) rose 6c to $3.43.

Dual-listed ANZ Bank (NZX: ANZ ) was down 20c at $32.80, Westpac (NZX: WBC ) fell 25c to $31.55, and Telstra (NZX: TLS ) lost 7c to $3.72.

Australia's S&P/ASX 200 Index was up 1% at 4832 in late afternoon trading.

Asian stocks followed US markets higher after bullish comments from investor Warren Buffett, with Japan's Nikkei share average rising 0.9%.

NZPA

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