NZ stocks: Sharemarket up slightly in morning trading

12.05 pm

The New Zealand sharemarket opened higher today, amid more quiet trading and after mixed performances on world sharemarkets overnight.

Most major markets - except Sydney and Tokyo - closed with double and three-figure losses.

The market improved during the morning and at 11am the NZSE-40 index stood at 2050.58 - up 3.90 points - or 0.19 per cent - and up from an opening 2048.09.

The NZSE-SCI capital index was 7.36 points - or 0.14 per cent - higher, at 5434.94, against an opening 5428.89.

Turnover at 11 am was 16.26 million shares, worth $52.19 million and of the 104 traded, 19 rose but 27 fell.

"Our market was really quiet at the opening and turnover was very light. If you take out the pre-market trading in Telecom there's only been 55,000 shares traded in the first half hour, so that'll give you an idea of how quiet," David Price, a dealer at Credite Suisse First Boston said.

Contact Energy was a cent lower at 295 and topped turnover at 11am, with with 9.05 million shares worth $27.15 million.

Two lines of three and six million shares traded off-market by broker, Credit Suisse First Boston and made up the lion's share of this.

A broker said the shares were crossed at $3 each but declined to comment on the buyer.

Power company Trustpower was steady at 360 on low turnover.

The Australian Gas and Light Co re-entered the fray today in the battle for control of the country's fourth-largest energy retailer, when it upped the bid range at which it might make an offer.

AGL gave notice that it might seek to buy TrustPower shares at $3.50-3.95 a share - up from a previous range of $3.30-$3.60 a share, for up to 100 per cent of the company.

Tranz Rail was 3c higher at 375 after closing lower in New York on Tuesday. The price compared with a 2001 high of 428 in March and a low of 350 in June.

Tranz Rail announced yesterday that West Coast Railway was the preferred bidder for its long distance passenger operation, Tranz Scenic.

A final deal was expected to be struck within two months but West Coast Railway indicated it did not want to buy five services.

Natural Gas Corp was a cent lowe at 90. The stock has been punished this month after the company issued an earnings warning on June 8.

Casino company Sky City lost 5c to 1070, WestpacTrust rose a 5c to 1640, Air NZ's domestic A shares were steady at 110 and the freely held B shares lost A4c to 139.

Qantas has told the Government that it is not giving up the fight to buy into Air New Zealand and its offer remained on the table.

Chief financial officer Peter Gregg also said Qantas was prepared to sell Brierley Investments' shares in Air NZ at a loss in its bid to buy a quarter stake in the airline.

Market heavyweight Telecom - which has a 23 per cent weighting in the Top 40 index - was 5c higher at 547 on turnover of 462,267 shares, worth $2.52 million and Telstra picked up 5c to 685.

Fisher and Paykel rose 10c to 1165, Brierley Investments was a cent lighter at 65, PDL Holdings was unchanged at 1040 and Fletcher Challenge spin-off, Rubicon, was a cent higher at 63.

Fletcher Building was a cent lighter at 228 and Fletcher Forests was steady at 29.

Meat exporter Richmond gained 5c to 246. PPCS chief executive Stuart Barnett is expected to join the board of the meat exporter when it meets today.

The meeting is the first since the aggressive Dunedin meat processing co-operative gained control of the listed Hawke's Bay meat company earlier in June.

Auckland International Airport rose 3c to 378, Lion Nathan was unchanged at 544, as was Montana Group at 480.

Pay TV operator Sky TV was steady at 345, as was part owner, Independent Newspapers at 360 and wood-products firm, Carter Holt Harvey rose a couple of cents to 170.

The Warehouse dropped a cent to 548 and Waste Management shed 5c to 375.

In other activity, drinks company Frucor was unchanged at 162, financial-services company Tower was a cent lighter at 523, AMP was steady at 2610, as was Baycorp at 1255.

Stocks closed mixed for a second day in New York on Tuesday, when Wall Street held its breath over the Federal Reserve's meeting to consider an interest-rate cut and Merrill Lynch hit the market with a profit warning.

The tech-rich Nasdaq composite index rose 13.75 points - or 0.67 per cent - to 2064.62 and added to the modest gain of the day before.

The blue-chip Dow Jones average index of 30 industrials closed with a loss of 31.74 points - or 0.30 per cent - at 10,472.48 and the broader, Standard and Poor's 500 composite index fell 1.84 points - or 0.15 per cent - to 1216.76.

- NZPA