NZ stocks: Sharemarket gains on back of corporate news

12.29pm

The sharemarket skipped higher this morning as a number of corporate results took centre stage and despite a fall in the share price of market heavyweight Telecom.

At 11.30am, the benchmark NZSX-50 gross index was up 8.24 points at 2597.40, while the NZSX-All capital index was down 2.81 points at 874.25.

Much of the indices' divergence came from Telecom's 7.5c a share quarterly dividend being factored into the NZSX-50, but stripped out of the NZSX-All capital index.

Telecom shares were down 4c at 552, its $26.1 million turnover equating to 50.5 per cent of the $51.6 million traded on NZX so far today.

ABN Amro Craigs broker Matt Willis said the market had a "quiet feel" about it today, though corporate news was providing some interest.

Rubicon and Mainfreight, including its subsidiary Owens Group, issued their March year results.

Forestry investor Rubicon reported a 91.4 per cent slump in its March year net profit to $1.21 million, from a one-off boosted $14.1 million the year before.

Rubicon shares were unchanged at 83c.

"The (Rubicon share) price isn't doing anything too drastic so obviously they've come in on expectations," Mr Willis told NZPA today.

Mainfreight's March year net profit dropped 33 per cent to $6 million, including its share of 80 per cent in Owens Group which posted a net loss of $5.8 million.

Excluding the Owens loss Mainfreight said its net surplus was up 33 per cent at $12 million.

Mainfreight was unchanged at 183, while Owens Group was unchanged at 112.

"Mainfreight core operation's... gone from strength to strength," Mr Willis said.

"Trying to assimilate Owens in, particularly the Australian operation, is the key for Mainfreight from here," he said.

Meanwhile, shares in New Zealand Oil & Gas (NZOG) plunged 12.5 per cent after it said the Pukeko-1 well off the Taranaki coast was not likely to be commercially developed. NZOG shares were down 9c at 63.

"It's the nature of the beast with these exploration companies. They're volatile stocks and I'm sure it's not a massive bolt out of the blue," Mr Willis said.

Elsewhere, other stocks to go ex-dividend today were Capital Properties (1.9c per share), DB Group (16.5cps), and Urbus Properties (3.62cps).

Other stocks on the move included AMP down 7c at 625, Capital Properties down 2c at 90, Ebos down 3c at 332, Michael Hill International up 3c at 578, Promina down 15c at 430, Tower up 3c at 162, Urbus down 3c at 90, and DB Group unchanged at 811.

There were 22 rises and 43 falls among the 113 stocks traded.

Overseas, the US Dow Jones shed 16.75 points to 10,188.45, the S&P 500 fell 0.60 of a point to 1120.68, and the Nasdaq Composite added 2.24 points to 1986.74.

- NZPA