NZ stocks: Sharemarket improves slightly in morning trade

12.50 pm

Following on from Tuesday's lower close, the New Zealand sharemarket opened weaker today but improved slightly during the morning.

There was a mixed bag of world sharemarkets overnight when New York, London, Frankfurt and Paris closed lower but Tokyo, Hong Kong and Sydney rose.

"Our market was reasonably quiet again at the opening," Geoff Brown at J P Morgan Chase said.

"I guess the news continues to focus on Auckland International Airport after yesterday's announcement from the Commerce Commission on price controls. It's down 8c early and is the main thrust of the index's fall," he said.

Over-all volumes were fairly light again.

June's volumes were the lowest since September, 1999 and so far this month volumes would only match that, Mr Brown said.

At 11am the NZSE-40 index stood at 2062.55 - up 0.49 of a point - or 0.02 per cent - after an opening 2060.66.

The NZSE-SCI capital index was 1.20 points - or 0.02 per cent - higher, at 5525.18 but down from an opening 5528.08.

Turnover at 11am was 9.96 million shares worth $19.09 million, with Auckland International Airport accounting for $1.80 million, Telecom $1.50 million, Tranzrail $1.42 million and Fletcher Building $1.27 million.

Rises outnumbered falls by 37 to 28 of the 113 shares traded.

Auckland International Airport, which fell 24c - or 6.3 per cent - on Tuesday, was 7c lower at 349. It fell to a two-month low of 340 shortly after the opening.

Market heavyweight Telecom - which has a 22 per cent weighting in the Top 40 index - was a couple of cents lower at 550 and Telstra rose 4c to 680 on 139,860 shares worth $947,777.

Lion Nathan steady at 550. It might consider selling its stake in winemaker Montana Group to rival bidder, British liquor group, Allied Domecq, it was reported today.

The two bidders are fighting over 10 per cent of Montana shares held by other parties in their battle for control of the $1 billion company.

Montana was steady with Tuesday's close at 480.

Forestry and biotechnology firm Rubicon, which listed on the exchange in March, hit a record 75 earlier in the week but was steady at 73.

Contact Energy was a cent higher at 307 and power company, Trustpower was unchanged at 310.

Tranz Rail was 15c higher at 405, compared with a 2001 high of 428 in March and a low of 350 in June.

Casino operator, Sky City rose 10c to 1100. It said today that the Casino Control Authority had released an interim finding in favour of allowing it to expand its Auckland casino and conference centre.

Natural Gas Corp rose 3c to 94, WestpacTrust was 10c higher at 1610, Air NZ's domestic A shares were steady at 109 and the freely held B shares were a couple of cents lower at 150.

Fisher and Paykel was 5c lower at 1175 and Brierley Investments was unchanged at 67.

Fletcher Building rose 6c to 248 and Fletcher Forests was steady at 30. The Forest preference shares were steady at 30 and topping turnover - by volume - with 1.70 million shares worth $509,591.

Meat exporter Richmond shed 5c to 245, Pay TV operator Sky TV was unchanged at 325, part owner, Independent Newspapers shed 10c to 365 and wood-products firm, Carter Holt Harvey rose 3c to 175.

The Warehouse was steady at 543, Waste Management was unchanged at 370, drinks company Frucor was a cent lower at 151, financial-services company Tower dropped 5c to 530, AMP gained 15c to 2675 and Baycorp lost 5c to 1225.

Stocks slipped on Wall Street on Tuesday, when a profit warning from Internet Security Systems dented yet another sector of the beleaguered market.

The tech-rich Nasdaq composite index fell 7.92 points - or 0.37 per cent - to 2140.80, the Dow Jones average index of 30 industrials closed 22.61 points - or 0.21 per cent - lower, at 10,571.31 and the broader, Standard and Poor's 500 composite index lost 2.26 points - or 0.18 per cent - to 1234.04.

- NZPA