NZ stocks: Electricity shares on the rise after Project Aqua

7.10pm

Electricity stocks were the main gainers on the sharemarket today in the wake of state-owned Meridan's decision to scrap the Project Aqua power project.

The benchmark NZSX-50 gross index rose 12.84 points, or 0.50 per cent, to 2590.89, while the NZSX-40 capital market was up 12.65 points, or 0.55 per cent, at 2320.98.

Market leader Telecom was up 1c at 582 on turnover worth $27.4 million.

The day's total turnover was worth $69.4 million.

ABN Amro's Matt Willis said Contact Energy and Trustpower were beneficiaries of the failure of Project Aqua as power prices are expected to rise. Contact Energy rose 7c yesterday and added another 17c to 557 today. It also announced it had abandoned plans to investigate buying the Australian assets of its 51 per cent owner, Edison Mission.

Trustpower was up 15c at 715.

Mr Willis said the potential electricity crisis could be a prominent theme in New Zealand's equity markets for some time.

"Not only for electricity stocks, but it's a major issue for the industrial stocks or big energy users in New Zealand." He said Australian industrial companies paid almost half the amount for their energy and had consistent sources of electricity.

Forestry stocks were also on the up today, Carter Holt Harvey up 1c at 221 and Tenon up 7c at 169c, ahead of tomorrow's capital return.

Mr Willis said last week's better than expected sale price for Carter Holt Harvey's tissue business highlighted the fact that the sharemarket has historically struggled to value forestry companies.

Financial services company Pyne Gould Corp (PGC), expected to soon be included in the top 50 index, made a strong debut listing, at $5.30 and rising to $5.55.

Trans Tasman Properties requested a trading halt at the end of the day, in light of a takeover notice issued by its 55 per cent shareholder SEA Holdings. Trans Tasman Properties last traded at 45 cents, up 10c, or 28.57 per cent.

Other stocks on the rise today included Sky TV up 5c at 525, The Warehouse up 3c at 430, Fisher & Paykel Healthcare up 8c at 1180, Metlifecare up 9c at 229, Telstra up 12c at 530, Ports of Auckland up 11c at 741.

On the downside, Sanford fell 18c to 481, ANZ Banking down 14c at 2187 and Rubicon down 1c at 79.

Of the 147 stocks traded today there were 64 rises and 27 falls.

- NZPA