NZ Stocks: Sharemarket improves during morning trading

12.00 pm

After Telecom pulled an otherwise positive market lower on Monday afternoon, the New Zealand sharemarket improved during morning trading today.

There were also better performances on world sharemarkets overnight when most of the major ones - except Tokyo and Sydney - closed with strong gains and Hong Kong was on holiday.

"Our stock exchange system was a bit slow in starting and the market didn't open until quarter to 10," Geoff Brown at J P Morgan Chase said.

There was nothing in the way of company specific news and prices were up or down only a cent or two but volumes were reasonable when things got moving.

Telecom improved but that was probably because of strong telecom markets overnight, Mr Brown said.

The market picked up in early trading and at 11am the NZSE-40 index stood at 2076.27 - up 7.22 points - or 0.35 per cent - after an opening 2069.05.

The NZSE-SCI capital index was 19.39 points - or 0.35 per cent - higher, at 5533.99, from an opening 5514.60.

Turnover at 11am was 8.02 million shares, worth $27.19 million and of the 111 traded, 45 rose and 15 fell.

Market heavyweight Telecom - which has a 22 per cent weighting in the Top 40 index - was 5c higher at 555 and was topping turnover at 11am with 1.44 million shares, worth $7.99 million.

The Commerce Commission is investigating a complaint by WorldxChange that Telecom abused its market power when it refused to switch WorldxChange's toll-bypass traffic to Clear's network.

Telstra was 3c lower at 675 on 143,000 shares worth $966,625.

Lion Nathan was a couple of cents higher at 542. Yesterday Australian brokers poured fresh scorn on New Zealand's stockmarket when Lion Nathan used the new takeovers code to thwart Allied Domecq's bid for Montana Group.

Montana rose a cent to 491. The first working day of the takeovers code brought with it a new display of manners and manoeuvres from Montana-control duellists Lion Nathan and Allied Domecq, although their frustration levels soared.

British spirits' giant, Allied Domecq said last night it would offer $4.80 a share for Montana.

Forestry and biotechnology firm Rubicon, which listed on the exchange in March, hit a record 75 earlier but was steady at 74.

It had gained 19 per cent since it announced it had sold its Challenge petrol retailing network for a higher-than-expected price and raised the amount of capital it planned to return to shareholders.

Contact Energy was steady at 302 and power company, Trustpower was a cent lower at 320.

Fishing company Sanford slipped from last week's strong rise to 695 and was steady at 670.

Tranz Rail was 5c higher at 390 but that compared with a 2001 high of 428 in March and a low of 350 in June. It was untraded on Wall Street on Monday.

Natural Gas Corp was a couple of cents higher at 89, Casino company Sky City rose a cent to 1095, WestpacTrust was 5c lower at 1635, Air NZ's domestic A shares were steady at 110 and the freely held B shares were a cent higher at 148.

Air New Zealand chief executive Gary Toomey described his talks with Government officials yesterday as "positive" and said he would meet Transport Minister Mark Gosche on Friday.

Air NZ is asking the Government to lift foreign airline ownership limits to allow 25 per cent shareholder Singapore Airlines to raise its stake.

Fisher and Paykel was steady at 1185, as was Brierley Investments at 67, Fletcher Building rose 4c to 241 and Fletcher Forests was steady at 30.

Meat exporter Richmond was unchanged at 247 and Auckland International Airport rose a cent to 381, before the release of a draft report by the Commerce Commission on whether price controls should be introduced at the country's three main airports.

Pay TV operator Sky TV dropped 2c to 328, part owner, Independent Newspapers was steady at 390 and wood-products firm, Carter Holt Harvey was unchanged at 172.

The Warehouse gained 4c to 544, Waste Management did the same to 375, drinks company Frucor was a cent higher at 154, financial-services company Tower rose a couple of cents to 527, AMP gained a cent to 2636 and Baycorp lost 5c to 1245.

- NZPA