NZ stocks: Sharemarket grinds slowly into action

12.20 pm

The New Zealand sharemarket ground slowly into action this morning, with just 10 million shares worth $28 million changing hands by late morning.

The benchmark NZSE-40 index was up just 0.5 of a point at 2064.54 by 11.30am.

Credit Suisse First Boston dealer James Snell said the main piece of corporate news today would be Tranz Rail's annual result - to be released late this afternoon.

"I think the market will be looking for details on the restructuring, rather than the bottom line result in this one," he said.

Tranz Rail announced last month it was selling its long-distance passenger services to Australia's West Coast Railway.

Shares in the rail operator were steady at 415.

Air New Zealand A and B shares were unchanged at 110 and 131 respectively after Australian transport minister John Anderson met New Zealand officials to discuss the future of the airline yesterday.

The Australian government said it preferred Qantas Airways Ltd's proposal to take a larger stake in the national carrier, ahead of a rival bid by Singapore Airlines Ltd.

"The market is taking a wait-and-see approach to see what the Government here decides on the ownership of SIA in Air NZ," Mr Snell said.

"It could be the end of August before that is announced and a lack of information is keeping investors away from the stock."

Lion Nathan topped turnover by number and value with 1.5 million shares worth $8 million changing hands. Brokers said that was due mostly to two large crossings of 600,000 and 827,307 shares. The brewer was steady at 520 by late morning.

Waste Management was flat at 350 after announcing it has completed three business purchases -- one in Australia and two in New Zealand.

The Melbourne-based business would add around $A1.2 million ($NZ1.50 million) in revenue, while the two New Zealand purchases, in Palmerston North and Nelson, would add $700,000, the company said.

In other movements market heavyweight Telecom was down 2c at 537 on turnover worth $3 million, while rival Australian telco Telstra added 13c to 633 on turnover of $6 million.

Sky TV added 1c to 350 after yesterday's rally. Carter Holt Harvey shed 2c to 182, Fletcher Forests added 1c to 33c and Auckland Airport added 3c to 348.

Rises outnumbered falls 36 to 15 among the 112 stocks traded so far.

Mr Snell said the light turnover locally was part of a global trend, with many investors taking time out for the Northern Hemisphere summer.

The reporting season, which kicks in fully next week should see the local bourse spark up, he said.

On Wall St overnight technology stocks rallied after top brokerage Merrill Lynch turned bullish on battered chipmakers like Texas Instruments Inc, but blue chips slipped as some investors sold on lingering worries of a slowing economy.

The technology-rich Nasdaq Composite Index ended up 41.25 points, or 2.03 per cent, at 2,068.38, after jumping more than 2.5 per cent earlier in the session.

The blue-chip Dow Jones industrial average slipped 12.80 points, or 0.12 per cent, to 10,510.01, after climbing more than 0.7 per cent. The broader Standard & Poor's 500 Index finished up 4.70 points, or 0.39 per cent, at 1,215.93.

- NZPA