NZ stocks: Shares find some post reporting season tone

The share market showed some signs of breaking out of its recent reporting season malaise with both leading indices making modest gains.

The benchmark NZSX-50 gross index ended 8.9 points or 0.37 per cent higher at 2450.66, while the NZSX-40 capital index ended 5.27 points or 0.24 per cent higher at 2241.84.

Direct Broking's Ken Allen said the market was stronger today.

"It's finally picked up a bit of steam on the back of the Dow and the rest of the Asian markets and we've seen some pretty decent buying across the board."

Turnover was worth $71.72 million and there were 49 rises and 55 falls among the 142 stocks traded.

Market leader Telecom was unchanged at 568 but second tier stock -- energy generator and retailer Contact Energy provided some impetus, rising 10c to 510.

Mr Allen said the rise was likely the result of recent speculation that Australia's AGL may bid for Edison Mission's 51 per cent stake in the company.

"It's probably forced a few people to perhaps cover their shorts or underwrite their positions and as a result we've seen the price up 10c, he said.

"It just reduces the chances of a placement to the market of the Edison stake."

AGL would likely be required to quit its stake in NGC to make way for a Contact purchase. Today NGC shares were 6c lower at 237.

Insurer and financial services company Tower rose 5c to 153 on speculation fellow insurer Promina is eyeing the company as a takeover prospect. Tower's rise today showed investors were "putting credence into that one", Mr Allen said. Promina shares were 6c lower at 400.

Elsewhere, some recent strugglers made modest gains.

Mr Allen said Sky City was having a "decent rebound" from its recent sell off, rising 5c to 430.

Discount retailer The Warehouse was approaching its price before it announced a disappointing half year result last week. Today it rose 3c to 433.

Waste Management, which yesterday announced plans for a second large step into Australia, was down 1c to 419.

Carter Holt Harvey was up 3c at 194 after reports it may get a top price for its tissue business, currently on the block.

Other stocks to move today included: Air NZ down 2c to 38, Auckland International Airport down 8c to 652, Cavalier Corp down 4c to 506, Fletcher Building up a cent to 412, Freightways down 5c to 215, GRD Macraes down 35c to 185, Independent Newspapers Ltd down 8c to 480, Michael Hill down 5c to 510, Ports of Auckland up 10c to 700, Port of Tauranga up 6c to 446, Trust Power up 7c to 688 .

The influence from the US was positive with the Dow Jones industrial average closing up 93.56 points, or 0.88 per cent, to 10,677.48, while the Standard & Poor's 500 Index rose 10.90 points, or 0.95 per cent, to 1,155.84.

- NZPA