NZ share market ends year at record levels

By NZPA

Friday 29th December 2006

The New Zealand shares finished the year with a flourish. Both the index and selected leading shares closed off the year at record levels.

The benchmark NZX-50 index rose 8.179 points to 4055.468, a new record after initially opening weaker. The market was only open for a half day ahead of the New Year holiday.

Rises outnumbered falls 43 to 26 among the 115 stocks traded and turnover was worth $54 million.

"We've finished at a record and it's all very positive," said Grant Williamson, partner at Hamilton Hindin Greene.

Fletcher Building rose 10c to $11.05 and Contact, which was down 10c in early trading, rose 2c to $8.32. Both were year highs.

Telecom eased 4c to $4.86. Fisher & Paykel Healthcare rose 2c to $4.26 and its twin Appliances eased a cent to $3.84.

Sanford rose 10c to $5.20. APN rose 8c to $6.80 following speculation that Tony O'Reilly's Irish company will buy out APN.

The Warehouse was unchanged at $7.20 as investors waited for the new year for any news on corporate activity in that stock.

Williamson said stock prices will be exaggerated in the new year.

"Normally institutional investors are away for the first half of January and retail investors are in charge," he said.

There is often a new year rally in the share market. Williamson said later in January institutions will look to take profits and the focus will turn to the profit reporting season in February.

"The earnings and just what impact the high dollar is going to have on some of these company's earnings is going to decide what the market does in coming months," he said.

But investor confidence is high.

Mainfreight rose 5c to $8.00 and Freightways rose 5c to $4.55. Air NZ rose 4c to 41.89 on news yesterday that Qantas was cutting flights between Wellington and Christchurch. Tourism Holdings gained 5c to $2.00.

Infratil slipped 3c to $5.45, while Port of Tauranga eased 7c to $5.95.

US stocks were little changed on Thursday as investors sold off recent outperformers to secure profits before the year-end, offsetting the impact of better-than-expected economic data in extremely light trading.

The Dow Jones industrial average was up 13.70 points, or 0.11 percent, at 12,524.27. The Standard & Poor's 500 Index was up just 0.29 of a point, or 0.02%, at 1427.13. The Nasdaq Composite Index was up 1.26 points, or 0.05%, at 2432.48.

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