NZ stocks: Sharemarket improves slightly on its firmer opening

12.15 pm

After yesterday's improved activity at home and better showings from world markets overnight, the New Zealand sharemarket opened higher today.

All the major world markets closed firmer and most scored double or three-figure gains.

"Things were a bit quieter at the opening - but on the positive side, which is always quite welcome - after yesterday's flurry and turnover is light," Peter Stokes, a senior investment adviser at JB Were said.

"There was good turnover yesterday and there doesn't appear to be the same hum, most stocks are up with Telecom driving things," he said.

The market continued to improve during the morning and at 11am the NZSE-40 index stood at 2048.24 - up 9.15 points - or 0.45 per cent - from last night's close and from the opening 2045.13.

The NZSE-SCI capital index was 20.15 points - or 0.36 per cent - higher, at 5552.29, also up from an opening 5541.58.

Turnover at 11am was 9.98 million shares worth $14.32 million, of which Telecom provided $2.81 million and Telstra $1.44 million.

Of the 108 shares traded 36 rose and 22 fell.

Market heavyweight Telecom - which has a 22 per cent weighting in the Top 40 index - was 4c higher at 511 and Telstra was unchanged at 630.

Fletcher Forests preference shares topped trading volume with 2.66 million shares and gained a couple of cents to 31, Fletcher Forests was a cent higher at 31 and Fletcher Building was unchanged at 272. Its price has risen steadily during July.

Fletcher Challenge Forests chief executive Terry McFadgen said shares in the forestry giant were worth at least 50 per cent more than their current market price.

It closed at 30c yesterday but was worth at least 46c, McFadgen told British investors while on a tour arranged by JP Morgan.

The company's valuation was based on current low log prices and assumed that it would recover less than half the $US225 million ($NZ549.71 million) it was owed by the failed Central North Island Forests Partnership.

Fletcher spin-off, forestry and biotechnology firm, Rubicon - which listed on the exchange in March - rose a cent to a record 78.

Since listing after the break-up of the Fletcher Challenge group in March, Rubicon's price has almost doubled from a low of 40c on debut.

Lion Nathan was unchanged at 543, as was Montana Group at 450.

The stock exchange's Montana Standing Committee is scheduled to meet next month, over complaints by brewer, Lion Nathan, regarding share purchases by rival bidder, Allied Domecq.

Carter Holt, New Zealand's largest timber and building-products company, was a couple of cents higher at 175. It is the second largest stock on the New Zealand market and carries a 7.00 per cent weighting on the NZSE-40 index.

Yesterday, Moody's Investors Service put CHH on creditwatch negative and the move covers both the long-term senior unsecured Baa2 rating and Carter Holt's P-2 short-term rating.

"The rating actions are prompted by the deteriorated operating performance of Carter Holt as evidenced by its weakened operating results since the fourth quarter of 2000," Moody's said in a statement.

Auckland International Airport was a cent lower at 354, Contact Energy was unchanged at 328 and Trustpower gained a couple of cents to 327.

After leading New Zealand ADRs lower on Wall Street overnight, Tranz Rail was unchanged here at 415, compared with a 2001 high of 428 in March and a low of 350 in June.

Casino operator Sky City was 56c lower 1170, Natural Gas Corp was unchanged at 93 and WestpacTrust rose 3c to 1585.

Air NZ's domestic A shares were unchanged at 104, as were the freely held B shares at 140.

Fisher and Paykel shed 5c to 1300 and Brierley Investments was unchanged at 65.

Meat exporter Richmond rose a couple of cents to 280, pay-TV operator, Sky TV, was 5c higher at 330 and part owner, Independent Newspapers, was unchanged at 390.

Frucor Beverages Group was unchanged at 175, the Warehouse rose a couple of cents to 564, Waste Management dropped a couple to 338, financial-services company Tower did the same to 508, AMP rose 16c to 2571 and Baycorp Holdings lost a cent to 1219.

Baycorp is planning to move its primary listing to Australia as it finalises merger talks with Sydney based Data Advantage.

Stocks closed higher on Wall Street on Thursday, bolstered by rosier earnings from hi-tech bellwether Nokia, that whetted the appetite of investors for shares in that sector.

The tech-rich Nasdaq composite index closed with a gain of 30.42 points - or 1.51 per cent - at 2046.59, the blue-chip Dow Jones average index of 30 industrials rose 40.17 points - or 0.38 per cent - to 10,610.00 and the broader, Standard and Poor's 500 composite index picked up 7.31 points - or 0.61 per cent - to close at 1215.02.

- NZPA