NZ stocks: Auckland Airport soars in low flying market

12.00pm

Auckland Airport shares soared 2.7 per cent following the announcement of Auckland City Council's sale of half its quarter stake at $4.90/share.

The rest of the market was unremarkable with the NZSE-40 capital index up 4.01 points to 1943.37 on very heavy turnover of $230 million shortly after midday.

Auckland Airport shares jumped 14c to 530 when trading resumed following a halt ahead of the council's announcement. They later descended to 528 on turnover of 39 million shares worth $193 million.

Forsyth Barr Frater Williams executive director Don Turkington said the rise was predictable as an uncertainty factor was removed. It was clear no trade buyer was going to take a holding and the share price had already anticipated that.

Market turnover was also boosted by 9.9 million shares traded in Powerco at $1.60 each. The company announced a 12 per cent shortfall in its 93 million share offer had to be taken up by underwriters Macquarie Equities.

Macquarie placed most of the Powerco shares it was landed with and was left with a residual holding of 1.6 million shares. Powerco shares were down 1c at a year low of 157.

Sanford rose 11c to 510 following bullish comments at the company's shareholder meeting yesterday. The company said it expected its profit to improve this year on the healthy $37 million profit reported in the 2001/2002 year. It also said it was on the acquisition trail.

Tower shares were steady at 166 following its $75 million annual loss reported yesterday. Around half of that was a writedown in the value of its Bridges unit in Australia. Squabbling between chairman Colin Beyer and former CEO James Boonzaier broke out over who was responsible for the company's problems and the loss of two thirds of its value.

Market heavyweight Telecom initially fell 5c to 460, but recovered to be 2c up at 467.

Skellmax was down 2c to 105. Yesterday chairman Keith Smith expressed unhappiness with the company's share price but said there was little he or the board could do about it, despite the company being on target to meet its $12.4 million profit forecast.

When it floated in June, Skellmax - an amalgamation of rubber icon Skellerup and pump maker Flomax - listed at a share price of $1.15.

Independent Newspapers was up 12c to 302 after it gave a positive profit update, saying it expects after tax profits to improve by about a quarter in the half year to December 31.

Updating the market in line with new continuous disclosure rules that took effect on Sunday, INL chairman Ken Cowley said trading in the six-month period was shaping up well.

Sky City rose 3c to 750 after it said that revenues at its Auckland casino in the five months to November were 15 per cent higher than the same period a year ago and revenues at Sky City Adelaide were 18 per cent higher for the same period.

The company advises that it is comfortable with current market expectations for a net surplus in the range of $95 million to $105 million for the year ending June 30, 2003.

Sky City Leisure convertible notes rose 6c to 190.

Scott Technology jumped 14c to 237 after it said at its annual meeting yesterday that sales and operating profit for the first three months of the financial year were substantially ahead of the same period last year. They are also well ahead of budget.

GDC Communications was up 6c to 131 after announcing two "highly significant appointments" -- Geoff Lawrie as managing director and Kevin Stratful as non-executive director.

Wrightson fell 11c to 118 after it issued a profit warning saying difficult trading and one-off costs would halve its half year profit to December 31.

The 26 rises matched the 26 falls among the 97 stocks traded.

- NZPA