NZ stocks: Market holds steady after initial gains evaporate

The New Zealand sharemarket traded sideways this morning after a small upward nudge on opening this morning.

By 11.30am the NZSX-50 gross index was 2.23 points or 0.10 per cent lower at 2310.06, while the NZSX-40 capital index was 0.65 points or 0.03 per cent higher at 2207.35. Turnover was $28 million.

Both indices initially inched higher in early trade as market titan Telecom rose 3c to 488, a gain Amro Craigs Equities retail adviser Bryon Burke said was down to local interest early in the session.

But Mr Burke said it appeared overseas sellers came in later in the morning pushing the stock a cent below its open to 484, its lowest level since May this year.

Elsewhere the market was pretty steady with "a few things going on in the market on the corporate front".

Sky City which held its annual meeting yesterday in Hamilton enjoyed investor attention early today rising 5c to 897.

At its meeting the company posted a June year net profit after tax of $107.2 million, 26 per cent up on the previous year. It also announced that on November 14 each existing ordinary share would be split into two ordinary shares.

Mr Burke said news of the spit, the second since the company was formed, had met with a positive reaction.

"It worked the first time, so lets have another go," he said.

Bulk Freight company Owens Group, currently subject to takeover bid from Mainfreight lost 3c to 112 after gaining 8c yesterday.

Mainfreight regained 5c to 140 after losing 11c yesterday as Australia's Toll Holdings bought a 12 per cent blocking stake in Owens Group.

Trustpower was up 15c to 581. Yesterday the electricity retailer and generator posted a net profit of $36.9 million for the six months ended September, 60 per cent or nearly $14 million up on the same period last year.

The Warehouse rose 5c to 575 after saying the legal challenge to its giant new Whangarei store had been defeated.

Meanwhile on overseas markets, US stocks were generally flat amid questions about whether the surprising economic growth would continue and as investors took profits after three days of consecutive gains.

The Dow Jones industrial average closed up 22.37 points, or 0.23 per cent, at 9,796.90.

In London Britain's top shares rose but closed off earlier highs. The FTSE 100 share index ended up 35.2 points, or 0.83 per cent, at 4,300.9.

European shares closed higher for the fourth straight day, and in Tokyo the Nikkei average ended down 0.41 per cent or 43.66 points at 10,695.56, falling for the first time in five sessions.

Back on the New Zealand market, stocks to move in early trade included: Air NZ up a cent to 49, BayCorp Advantage up 7c to 315, Carter Holt Harvey down 2c to 185, Fisher & Paykel Appliances down 10c to 1480, Fisher & Paykel Healthcare down 5c to 1190, Hellaby Holdings down 5c to 475, Infratil up 4c to 249, Nuplex down 2c to 418, NZX up 3c to 483, Sky TV down 2c to 514, Steel & Tube Holdings up 7c to 392, and Telstra down 3c to 542.

There were 29 rises and 32 falls on 117 stocks traded by 11.30am.

- NZPA