Shares enjoy robust trading

06:08, Feb 08 2013

 

The New Zealand sharemarket enjoyed a robust days' trading today, dominated by a Government announcement affecting Chorus.

The NZX traded up 30 points or 0.82 per cent to 4230.

On the currency markets, the New Zealand dollar eased slightly to US83.46c from US83.73 at 8am today, after the European Central Bank boss talked down the euro, pushing investors towards the greenback.

The trade weighted index recently traded at 75.77 from 75.71 yesterday.

Trading was boosted by solid interest in telecommunication infrastructure firm Chorus, which rose 10 per cent or 29c to $3.15.

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James Smalley, client adviser for Hamilton, Hindin Greene, said the stock bounced after a Government review of telecommunication regulations was announced.

The review sidelines a Commerce Commission draft ruling that would have slashed Chorus' prices for use of its copper-based broadband network.

After being sold down on fears of a negative outcome, Smalley said Chorus investors "obviously think that's gonig to be very positive for the company".

Other risers included Somerset, up 3.6 per cent to $2.57 on ongoing positive sentiment of the retirement village sector.

Trade Me rose 2 per cent or 9c to $4.28 ahead of news that the company was joining the NZX top 10 index.

"Institutions may have sensed that was coming," said Smalley.

Decliners were largely small stocks trading illiquidly. Hellaby fell 8c to $3.32 and Postie Plus Group fell 3c or 12 per cent to 22c.

BusinessDay.co.nz