NZ stocks: Late flurry of action in quiet day's trading

By ADAM BENNETT - 7.00pm

A last minute flurry of activity nosed the New Zealand sharemarket's leading index into positive territory after a largely flat day's trade today.

By the 5pm close the benchmark NZSX-50 gross index was up 1.27 points or 0.05 per cent at 2441.75, while the NZSX-40 capital index was down 9.45 points or 0.42 per cent at 2236.57.

The NZSX-40 capital index moved lower as a result of market leader Telecom going ex-dividend today to the tune of 5 cents. The NZSX-50 gross index strips out the effect of share price falls due to dividend payouts.

Telecom ended the session 5c lower at 568 or square taking into account the dividend payout.

ASB Securities' Stephen Wright said the day's trade was relatively quiet with turnover worth $70.57 million, with 34 rises and 62 falls among 146 stocks traded.

Among second tier stocks, Contact Energy was down 4c at 500, Carter Holt Harvey was unchanged at 191 and Fletcher Building was a cent higher at 411.

Meanwhile, one of the day's few highlights was a 6c run up by recuperating insurer and financial services group Tower.

Mr Wright said the rise was due to yesterday's Sunday Star-Times article suggesting the company may be a takeover target for fellow insurer Promina.

"There's a certain amount of speculative buying but there's also some good institutional buying, whether from offshore or locally I couldn't tell you," Mr Wright said.

Promina itself also gained strongly, putting on 18c to 406. Mr Wright said the move was on fairly low volumes but the stock was following its Australian price higher as it continues to enjoy investor favour after last week's robust result.

Discount retailer The Warehouse staged something of a recovery today after its battering on Friday when it posted a disappointing result dragged down once again by its Australian business.

Greenslades broker Paul Valk said the retailer saw "good, solid buying" today finishing 11c higher at 430 -- close to pre-result levels.

Chemical manufacturer Nuplex ended the session 2c lower at 443 after announcing it had bought the Australian-based Colour Dispersion Company (CDC) for an undisclosed sum.

Sky City lost a further 5c to 425 after Friday's confirmation that it had only very slightly lifted its half year net profit to $55 million.

Tenon, formerly known as Fletcher Forests ended today's session a cent lower at 133.

Other stocks to move today included: Auckland International Airport down 7c to 660, BayCorp Advantage down 5c to 318, Colonial Motors up 10c to 285, Fisher & Paykel Appliances down 5c to 380, Fisher & Paykel Healthcare down 5c to 1165, NGC Holdings up 6c to 243, NZX down 20c to 700, Owens Group up 11c to 117, Repco up 7c to 308, Telstra up 8c to 540, and Tranzrail down 5c to 139.

- NZPA