NZ stocks: Promina listing dominates sharemarket

6.00pm

Insurance group Promina's debut dominated the New Zealand share market today with trading in the company's stock making up a third of the day's turnover by value.

Driven by trade in Promina and market heavyweight Telecom, the NZ50 gross index was up 1.06 per cent or 20.98 points to 2000.41, while the NZSE40 capital index rose by 0.87 per cent or 17.04 points to 1976.15.

Promina, the demerged and rebranded Australasian interests of financially stretched British-based Royal and SunAlliance, was listed on both the Australian and New Zealand sharemarkets today. The Promina float is the largest in the world so far this year.

Trading in Promina shares on the New Zealand market began at 2pm where they initially traded at $2.15 , a 6 per cent premium on their listing price of A$1.80 ($2.03). By local close at 4pm they were at 218.

Promina was the top stock traded by volume and value today.

In all, 14.4 million Promina shares to a value of $30.8 million changed hands this afternoon. Total turnover on the market was 35.1 million shares with a value of $85.4 million.

Broker Barry Johnson of Macquarie Equities said huge volumes of Promina had traded on both sides of the Tasman.

"Fifteen million here so far and in Australia we've had 200 million shares which is huge out of a total issue of a billion shares. So 20 per cent of the company has changed hands so far on day one.

"I think the price surprised some people but it sounds as if it had some pretty substantial international demands. It's been a very successful listing at this point in time."

Meanwhile Telecom ' 'had a very good day" rising 12c or 2-1/2 per cent to 490.

Mr Johnson said Telecom's gain was due to a combination of its positive profit result last week, favourable sentiment from overseas markets and the release today of the Telecommunications Commissioner's decision on the price at which Telecom can sell services to TelstraClear, an outcom e perceived as "not as bad as it might have been".

TelstraClear's parent company Telstra's shares were 7c to 482 this afternoon.

Elsewhere on the market, Brierley Investments "obviously had a bit of interest as well," Mr Johson said.

"There's obviously been somebody building a stake ...they're up 19 per cent on the day on reasonable volumes," he said.

By local close Brierley Investments was up 13c to 81.

Other stocks to rise included AMP up 29c to 605, Baycorp Advantage up 6c to 184, Carter Holt Harvey up 2c to 160, Fisher & Paykel Appliances up 5c to 1065, Hellaby Holdings up 14c to 375, Port of Tauranga up 18c to 443, and Sky TV up 5c to 405.

Stocks which fell included Auckland International Airport down 3c to 522, Fletcher Building down 4c to 322, Hallenstein Glasson down 6c to 289, Lion Nathan down 4c to 618, and Sanford down 5c to 575.

There were 56 rises and 34 falls among the 130 stocks traded today.

- NZPA