NZ stocks: Market rises to INL-Sky TV deal

The New Zealand stockmarket traded in positive territory this morning, fuelled by an immediate rise in market leader Telecom.

By shortly before midday the NZSX-50 gross index was up nearly 17 points or 0.77 per cent to 2205.22, while the NZSX-40 capital index was up 14.3 points or 0.68 per cent to 2130.61.

Turnover by 11.30am was $32 million on 7.8 million shares traded.

The market's firm tone this morning was "helped by the announcements coming through, but also by that Sky TV deal and perhaps to some extent the implications that has for Telecom", Broker Peter Lynds of Direct Broking told NZPA.

Yesterday Independent Newspapers Ltd offered the equivalent of $4.63 for each Sky share it does not already own.

Telecom has already agreed to sell its 12 per cent stake in Sky to INL. Telecom also owns 10 per cent of INL.

By midday Telecom shares were up 8c to 502, INL was unchanged at 431, and Sky TV was up a cent at 466.

"It always helps the index when Telecom's up but the rest of it is quite steady", Mr Lynds said.

The market's other big story yesterday was news of National Australia Bank's buy-up of 34.3 million AMP shares which secured it a 5.4 per cent stake in the troubled insurer.

The buy-up saw AMP's shares rise 143c on the New Zealand market yesterday. This morning, AMP continued to rise, adding 7c in morning trade.

Tranz Rail this morning announced a net year loss of $2.6 million, compared with the previous year's $122.7 million deficit. Managing director Michael Beard said the net loss was lower than that put to the market in mid-June. The rail operator's shares were unchanged at 99c following the announcement.

Auckland International Airport which yesterday confirmed a June year net profit after tax (npat) of $83.5 million, up 16.8 per cent on last year was up 7c this morning to 625.

Allied Farmers this morning announced a net profit after tax of $2.15 million for the year to June, a decrease of 37.2 per cent from the previous year. The company's shares rose 5c to 215 following the result.

On a general basis Mr Lynds said the market was presently being driven by buyer interest "and it's probably to some extent underwritten by the results coming through which appear to be pretty well met by the market".

Meanwhile on the overseas markets Wall Street finished higher yesterday after two reports showed the US economic recovery is accelerating. The blue-chip Dow Jones industrial average added 42.87 points, or 0.46 per cent, rising to 9,376.66. The broader Standard & Poor's 500 Index rose 6.11 points, or 0.61 per cent, to 1,002.90.

In London top shares fell, with the leading FTSE 100 share index ending down 8.4 points or 0.2 per cent at 4,198.0.

Japanese stocks fell for a second day as investors in profits on recent winners, including steel makers and heavy machinery producers. The Nikkei average closed down 83.77 points or 0.81 per cent at 10,225.22.

In morning trade by 11.30am stocks to rise on the New Zealand market included: Air NZ up a cent to 52 , BayCorp Advantage up 6c to 236, Briscoe up a cent to 178, Contact Energy up 4c to 494, Fisher & Paykel Healthcare up 2c to 1230, Promina up 3c to 308, Sky City up 12c to 890, Turners Auctions up 9c to 375, the Warehouse up 6c to 512, and Waste Management up 5c to 382.

S tocks to fall included: Cavalier Corp down 4c to 500, Fisher & Paykel Appliances down 5c to 1460, Hellaby Holdings down 5c to 465, NZ Refining Co down 66c to 1584, NZX down 10c to 465, Pacific Retail down 6c to 202, Steel & Tube down 3c to 376, Telstra down 2c to 550, and Westfield down 4c to 370.

There were 40 rises and 25 falls on 107 stocks traded.

- NZPA