Telecom edges up in early trade

NZPA

Friday 11th February 2011

Telecom shares edged up after the company reported half year profit fell by about a third, and Guinness Peat Group gained after announcing it was about to start a sell down of its assets.

The wider market started the day firmly, with the benchmark NZX-50 index up 15.08 points to 3380.95 around 10.15am, after losing 20 points yesterday in a bout of profit taking.

Telecom was up 1c to $2.20, while GPG lifted 4c to 74c.

NZ Refining Co rose 15c early to an 18-month high at $5.15, and fishing company Sanford rose 10c to $5.05.

The Warehouse was up 3c to $3.59, Tower lifted 3c to $1.97, Ryman Healthcare gained 2c to $2.39, and Auckland Airport rose 2c to $2.25.

After falling 19c yesterday, on the heels of a strong result, logistics company Mainfreight was up 2c early today to $8.22.

Key stocks Fletcher Building and Contact Energy were unchanged early on $8.11 and $6.25, respectively.

In the United States, stocks finished the day mixed, dragged down by Cisco Systems and Akamai Technologies, which both issued weak earnings forecasts, raising concerns about business spending.

Cisco, the world's largest networking equipment maker, fell 14% , the most of the 30 stocks that make up the Dow Jones average. The company's fourth-quarter income slid 18% because of lower sales to government agencies.

The Dow Jones industrial average ended an eight-day winning streak, losing 0.1% to close at 12,229, on preliminary figures, while the Standard & Poor's 500 index rose a point to 1321, and the Nasdaq composite index also rose a point to 2790.

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