NZ stocks: Telecom leads the way in light market

Solid gains on Wall Street and further improvements by market leader Telecom were not matched on the New Zealand sharemarket this morning, where activity was subdued.

"It's quite quiet. I think investors are quite mindful of the recent rally in the market and the forthcoming results season only being a few weeks away now," First NZ Capital broker Malcolm Davie said.

"I guess if it wasn't for Telecom this market would be back a little bit."

Just after 11.30am, the benchmark NZSX-50 gross index was trading sideways, with a gain of 2.7 points, or 0.08 per cent, at 3323.98. The NZSX all capital index was 0.26 points lower at 1042.86.

Telecom was 3c higher at 630. It has been bid up in recent sessions as investors position themselves for the company's August 5 annual result at which it is expected to announce a special dividend or capital repayment.

Among other top stocks, Auckland International Airport was unchanged at 234 and Carter Holt Harvey rose on opening but then flattened out at 237.

No 2 stock Contact Energy was steady at 788, as were Fletcher Building at 688, and Fisher & Paykel Appliances 359, while sister stock Fisher & Paykel Healthcare fell 4c to 350.

Power company TrustPower was up 5c at 605. Yesterday United States energy company Alliant Energy Corp said it was "evaluating" its quarter stake in the company. Infratil which also owns a significant stake in TrustPower was up 3c to 395.

Elsewhere in the energy sector, NGC Holdings was down 5c at 379.

In general, trading was fairly light this morning, with just 9.5 million shares worth $31.5 million changing hands.

Falls outnumbered rises by 24 to 18 among the 94 stocks traded.

Shares in BIL International traded up 3c at 107 as they resumed trading after a takeover announcement.

Hong Kong property and investment firm Guoco, controlled by Malaysian tycoon Tan Sri Quek Leng Chan, yesterday confirmed it has made a cash bid for Singapore's BIL International, valuing the firm at $S1.64 billion ($1.46 billion).

Guoco Group is offering $S1.20 or $1.07 for all remaining BIL shares.

However, Mr Davie refused to be drawn into the romance of the venture.

"It's a bit of a 'so what' situation. Most people have long since departed the scene on that stock. It's been an awful place to be for a long, long time and I think most people will be glad to see the back of it."

BIL International has its primary listing in Singapore. The bulk of its many New Zealand shareholders have small stakes in the company.

"I think the romance has gone many years go... if there ever was any," he said.

Juice company Charlie's made its market debut yesterday through its back door listing via Spectrum resources. Today it was up 1c to 14c, but down on yesterday's list price of 15c.

- NZPA