NZ stocks: Market awaits company results

12.00pm

Trading was all quiet on the sharemarket this morning ahead of several significant company results this week.

Just after 11am the NZSE-40 capital index had dropped 9.73 points to 2045.66 on turnover of $19.6 million.

AMP led the turnover by value, falling 10c to 1660 on shares worth $6.7 million. Last week the company booked a June half year net profit of A$303 million ($356.55 million), from A$403 million in the previous corresponding period.

Telecom was the most actively traded stock, down 8c to 492 on $2.8 million worth of shares.

Waste Management was also strongly traded, back one cent at 322.

Fisher & Paykel Healthcare was enjoying a strong run, up 20c to 980 on the back of reassuring comments from the company, a line of new products and a positive recent result.

"People are starting to zero in on it a little more," said DF Mainland broker Sam Macdonald.

This morning GPG formally announced that two of its investments, pipfruit exporter Enza and fruit and vegetable wholesaler Turners & Growers, would merge.

GPG, which was down a cent at 173 on light trade, said the boards of both companies had agreed to merge and planned to seek a full listing in the first quarter of next year.

Among the companies due to post results this week, Air New Zealand was down a cent to 65; Sky City was steady at 652; and Tourism Holdings Ltd was up 2c at 92.

Brokers said Sky City was expected to produce a good result, ranging around a net profit of $48 million after a writedown from its Force Corp investment.

But forecasts varied wildly for Air NZ, which frustrates many institutions because so few of its shares are now available to the public.

Other stocks to move included Fletcher Forests ordinary and preference shares up a cent to 24; Carter Holt Harvey down a cent to 175; Contact back 3c to 390; DB Breweries up 20c to 590; Independent News up 4c to 340; Lion Nathan down 10c to 590; and Michael Hill down 2c to 513 after announcing expansion plans in Canada.

Christchurch-based medical supplies company Ebos Group rose 14c to 309 after it reported a 16.8 per cent increase in net profit for the year to June 30.

So far there have been 25 rises and 25 falls on 88 stocks traded.

Offshore, stocks fell on Wall St on Friday night as investigations into Citigroup and AOL Time Warner reignited fears of more corporate misconduct. But the broad market managed to log its fifth straight week of gains for the first time in two years.

The Dow Jones industrial average lost 180.68 points, or 2 per cent, at 8872.96. The broader S&P fell 21.84 points, or 2.27 per cent, to 940.86. The tech-laced Nasdaq Composite lost 42.33 points, or 2.97 per cent, to 1380.62. It was Nasdaq's third consecutive week of increases.

- NZPA