NZ shares end positively, Telecom up

By NZPA

Thursday 15th February 2007

The sharemarket recovered during the session, despite a fall in Fletcher Building's share price following yesterday's mixed result.

After a negative start, the benchmark NZSX-50 index closed up 11.36 points, or 0.3%, at 4192.67. Turnover was valued at $134 million.

"A positive day on the market today, not surprising considering the strong offshore performances we saw last night and today in Asia," said Grant Williamson of Hamilton Hindin Greene.

Fletcher Building fell 15c to $10.95, compounding yesterday's 25c fall after a 2% rise in first half net profit to $193 million in a difficult market.

"There was maybe a touch of disappointment in the result that it wasn't a little bit higher, but I think it's also a reason for investors to take profits -- the result's out of the way, there's really not much more in the next wee while," Williamson said.

"I think the downside at these levels is very limited because the company remains on attractive fundamentals."

Top stock Telecom was up 7c at $5.11.

"It was looking reasonably weak first thing this morning, but when the Australian market kicked in, it perked up quite well. It's really just buying on speculation of the yellow pages and what they might get for that -- it's continuation of the same old story," Williamson said.

Contact Energy was up 4c at $8.87, Fisher & Paykel Healthcare fell a cent to $4.22, and F&P Appliances lost 2c to $3.72.

AMP fell 15c to $12.11, having run up to a four-and-a-half-year high yesterday. The financial services company reported a 12%rise in annual profit of $66 million, and an 11% rise in profit for its Australian parent.

Kiwibank said it was taking AMP's $700 million worth of home loans from HSBC on to its books, meaning it will be the financier of the loans, for a payment of around $8 million.

Also reporting today, Steel & Tube Holdings said interim profit fell 17% due to a slowing economy and the high New Zealand dollar. Steel & Tube shares fell 9c to a four-month low of $4.58.

Retailers were mixed following a surprisingly strong 1.8% rise in retail sales for the December quarter, which added to widespread expectations that interest rates will go up next month.

Hallenstein Glasson was up 6c at $5.26, The Warehouse fell 2c to $7.08, Pumpkin Patch fell 5c to $4.70, and Briscoe Group rose a cent to $1.72.

In Australia, shares were up 0.6% at a new high of 5998.9, while Japan's Nikkei share average rose to its highest in nearly seven years after data showed Japan's economy grew more than expected.

Earlier on Wall Street, US stocks leapt after Federal Reserve chairman Ben Bernanke suggested the economy was growing but not so quickly as to fan inflation.

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