Fletcher Building helps boost NZ shares to new record high

By NZPA

Tuesday 14th November 2006

The New Zealand share market returned to its record-breaking streak today, as an upbeat Fletcher Building helped boost the index.

The NZX-50 index rose 22.22 points, or 0.6%, to 3840.70, more than reversing yesterday's 12.37 point fall. Turnover was valued at $133 million, with rises outnumbering falls 70 to 34.

"There's a pretty consistent theme driving this market, and that's obviously M&A activity, real or imagined," Matt Willis of ABN AMRO Craigs said.

"In saying that, there has been news at an operational level for a few stocks that has helped, the likes of Fletcher Building."

Shares in Fletcher Building closed up 13c, or 1.3%, at $10.18.

The No 2 stock, expected to benefit if Auckland decided on building a new waterfront rugby stadium, told today's annual meeting that it was comfortable with analysts' annual profit forecasts and was performing slightly ahead of last year.

Top stock Telecom rose 6c to $4.61, while third-ranked Contact Energy fell a cent to $7.74.

Shares in Lion Nathan fell a further 22c to $9.20 after yesterday reporting a 3.9% fall in annual pre-tax earnings in New Zealand to $86.7 million. Group net profit rose 12%.

Small cap stock, dental software company Software of Excellence, was steady at $2.05, holding on to yesterday's gain after announcing its first dividend payment since listing, and healthy interim profit.

"It's easy to look towards external forces driving this market, but a lot of New Zealand businesses I think are being managed well, and this is a classic. They sold their enterprise business last year and have really turned this thing around," Willis said.

Software of Excellence shares have recovered from a trough late last year of 85c.

Tourism Holdings fell a cent to $1.81 after telling shareholders it was trading in line with forecast, and planned to streamline its business.

Nuplex hit another record high, up 10c to $7.00, Fisher & Paykel Appliances gained 6c to a three-month high of $4.20, F&P Healthcare lost 7c to $4.28, and Sky TV was up 5c at $5.94.

The Warehouse was up 8c at $6.99, amid suggestions British grocery giant Tesco could be interested in buying it.

Tower's temporary shares rose 2c to $2.44.

Australia's benchmark index was up 0.6%, with Macquarie Bank reporting better than expected earnings. Japan's Nikkei climbed 1.7%, after stronger-than-expected gross domestic product data sparked a rebound in firms sensitive to domestic demand.

Earlier, US stocks rose in cautious trading as falling oil prices lifted shares of industrial bellwethers such as General Electric Co.

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