NZ stocks: Corporate news buoys sharemarket

6.00pm

The was plenty of news but not much in the way of price movements on the sharemarket today.

The benchmark NZSX-50 gross index was up 6.50 points to 2861.47, while the NZSX-All capital index rose 2.39 points to 951.74.

Top stock Telecom set the tone for the broadly positive market, up 1c to 600 on turnover worth $34.6 million. Total market turnover today was worth $78.1 million.

First NZ Capital broker Don Leithwaite said the market managed to maintain some of its recent momentum today, on the back of a raft of corporate news .

"We've had a pretty good run and we're doing quite well to keep our shape," he said.

"For a Monday it's a reasonable eventful day. Turnover's moderate not huge," Mr Leithwaite said.

The news of the day was the Australian Gas Light Company (AGL) agreeing to sell its 66.05 per cent stake in gas pipelines company NGC to Vector.

The widely-anticipated $3 per share deal is worth $877.4 million in total.

NGC shares fell 6c to 300 on the news, and Mr Leithwaite said shareholders may have been hoping for a higher price.

Vector also said today it planned to come to the market within the next 12 months for a listing of 24.9 per cent of its issued capital.

Other news of note came from Air New Zealand and Fisher & Paykel Appliances.

Air New Zealand fell 2c to 158 after announcing a $350 million upgrade to subsidiary Air Nelson's fleet of aircraft.

And F&P Appliances gained 14c, or 3.47 per cent, to 417 on the back of a US$33 million ($49.4 million) purchase of US cooking appliance manufacturer and distributor Dynamic Cooking Systems.

F&P Appliances said it expected to invest a further US$28.7 million in the US company by December 2005.

Meanwhile, Michael Hill International fell 20c to 725, despite announcing a 3.8 per cent rise in same-store sales for the September quarter.

Same store sales across the jeweller's operations in New Zealand, Australia and Canada rose to $46.73 million, from $45.02 million for the same period last year.

Shareholders in rural services company Wrightson today approved a share buyback of one out of every six shares for $1.56 per share. The offer closes on November 11, with payment to follow on November 17. The stock fell 1c to 154

Interest remained strong in Powerco, which is the subject of a controversial $2.15 per share takeover from Prime Infrastructure. The takeover target racked up turnover worth $8.9 million, falling 1c to 211.

Of the 157 stocks on the move today there were 65 rises and 43 falls.

Other stocks on the move today included: Carter Holt Harvey up 2c at 236, Cavalier down 8c at 486, Fletcher Building up 10c at 594 and Toll NZ up 4c at 270.


- NZPA