NZ stocks: Market gains in firm morning trade

12.00pm

The New Zealand sharemarket edged higher this morning in a session buoyed by gains in top stocks Telecom and Contact Energy.

At 11.30am, the benchmark NZSX-50 index was up 5.95 points at 2593.55, while the NZSX-All capital index was up 1.36 points at 878.61.

Top stock Telecom was up 3c at 562, its $10.5 million turnover representing 23 per cent of the $45.5 million traded on NZX so far today.

Shares in Contact Energy were also up 1c to 564.

Hamilton Hindin Greene broker Grant Williamson said trading on NZX was firm although there was little corporate news about.

A large parcel of shares in Metlifecare dominated this morning's trade, the retirement village operator's remaining shares unchanged at 220.

The 8.1 million Metlifecare shares sold equated to 9.4 per cent of its shares on issue.

"It (the large share parcel) has created no interest in the stock itself," Mr Williamson told NZPA today.

Telecommunications company Cabletalk Group today posted an improved net profit after tax of $1.9 million for the March year.

"There were some large one-offs in there and it did include some earnings from discontinued business (Telecom) that it won't have in the future.

"It's good earnings per share... a stock that's perhaps a wee bit undervalued," Mr Williamson said, noting Cabletalk shares were up 4c at 26.

Meanwhile, Tower shares were up 2c at 163 after yesterday gaining 12c on the back of a favourable profit result.

In the March half, Tower posted a net proft after tax of $20.5 million, reversing an horrendous $154.44 million loss for the same period last year.

"It has shown good improvement after yesterday's result," Mr Williamson said.

"The market's really taken heart from a good turnaround in their Australian operations and it looks like it's on the recover," he said.

At its annual meeting in Auckland today, Briscoe Group flagged an dip in its July half profit and an intention to expand.

Market watchers have speculated on whether Briscoe would snap up the retail assets of Pacific Retail Group, which are Noel Leeming, Bond & Bond, and Big Byte.

Briscoe shares were down 2c at 130.

Casino operator Sky City was up 2c at 474 after it yesterday got Overseas Investment Commission approval to bid for the 26 per cent of cinema operator Sky City Leisure it does not already own.

Other stocks on the move included Cavalier down 2c at 477, Ebos down 3c at 332, Mike Pero up 1c at 94, Nuplex down 5c at 510, Promina up 5c at 425, Sanford down 10c at 480, The Warehouse up 2c at 433, and Lion Nathan down 1c at 735.

There were 31 rises and 25 falls among the 106 stocks traded so far.

Overseas, the Dow Jones rose 95.31 points to 10,205.20, the Nasdaq Composite gained 8.35 points to 1984.50, and the S&P 500 added 6.34 points to 1121.28.

- NZPA