NZ stocks: Market pauses after strong showing yesterday

11.50am

The sharemarket paused in morning trading today following yesterday's strong showing when it rose 0.4 per cent against a global trend of falling markets.

The benchmark NZSX-50 gross index was down 0.55 of a point to 2525.97 and the NZSX-40 capital index was up 0.84 of a point at 2287.47 at 11.35am.

Market leader Telecom totally dominated trading, with its turnover valued at $24 million out of the market total of $36 million. It was down 1c to 580.

No 2 stock Carter Holt Harvey eased back 2c to 202 following a 7c gain yesterday as speculation gained momentum that it would get a high price for its tissue business and make a substantial distribution to shareholders.

Adding to optimism, US tissue company Kimberly-Clark overnight announced 6 per cent rises in its tissue prices. The company has said it would make an announcement by the end of the month.

No 3 stock Contact Energy added 3c to yesterday's 5c gain to reach 520. Speculation has intensified that Australia Gas Light is about to launch a bid for Edison Mission's 51 per cent stake.

People had feared a placement at a discount to the market and that now seemed less likely. AGL is not expected to buy at a significant premium.

Fletcher Building pulled back 1c from yesterday's 7c gain to sit at 435. It had risen on indications that the slowdown in the building industry was not likely to be as sharp as first feared.

Air New Zealand rose 1c to 39c despite news that the New Zealand Inland Revenue is interested in the Hong Kong tax authorities' claim that the company may have underpaid its tax to the tune of up to $107 million.

Hallenstein Glasson added another 4c to 299 to yesterday's hefty 19c rise. The clothes retailer is up nearly 9 per cent after posting a 20 per cent growth in its half year net profit to February 1.

The retailer said it would sell its children's store chain and increased its dividend by 1c to 10cps.

Brokers said it was a welcome pleasant surprise from a retailer after The Warehouse and Briscoe had sprung rather less welcome news on the market recently.

NZX fell 10c to 820. Australasian clothes retailer Just Jeans is reported to be by-passing NZX for its big listing, expected to be announced today.

Richmond fell 10c to 250, Tranz Rail fell 3c to 140, Tourism Holdings fell 2c to 157, Wrightson rose 2c to 122, and Port of Tauranga was down 5c to 435.

There were 35 rises and 25 falls among the 100 stocks traded.

- NZPA