NZ stocks: Shares make small gains on power sector

6.00pm

The sharemarket's benchmark index ground out a modest gain today, powered largely by a rallies in top energy stocks as fresh speculation about a major rejig of ownership in the sector emerged.

At the 5pm close the NZSX-50 gross index was 3.85 points higher at 2622.13, while the NZSX all capital index was up 2.5 points at 879.12.

Top stock Telecom was up 2c to 565, but most of the action was in Contact Energy -- up 12c to 588 and to a lesser extent Trust Power -- up 6c to 426.

ASB Securities head of advisory Stephen Wright said Contact's rise alone had probably accounted for the NZSX-50's gain.

Speculation mounted today that an announcement of the sale of US energy giant Edison Mission's 51 per cent stake in Contact is imminent. The Australian Gas Light Co (AGL) is tipped as the clear front runner for the sale.

Today a report in the New Zealand Herald said that Vector may be partly privatised and is understood to be in talks with gas pipelines company NGC which had fuelled the market rumours.

AGL is tipped to sell its 66 per cent stake in gas pipelines company NGC Holdings if it buys the Edison stake and if Vector purchased it, that could also be linked to a privatisation in the form of a reverse takeover.

"There seems to be plenty of things percolating behind the scenes," Mr Wright said.

He said other potential players such as Australia's Origin Energy may also be waiting in the wings.

Meanwhile across the top of the board, Auckland International Airport was down a cent to 666, Carter Holt Harvey was up a cent to 197, Fisher & Paykel Appliances down 2c to 446, Fisher & Paykel Healthcare down 2c to 1294, Fletcher Building down a cent to 433, Independent Newspapers down 2c to 480, Sky City down 6c to 467, Sky TV down 5c to 515, Steel & Tube Holdings up 4c to 389, and The Warehouse up 2c to 427.

Carpet maker Feltex which disappointed with a lacklustre recent re-listing on the NZSX today rose a cent to 166. "It's crawling slowly back, sooner or later it will get back to its issue price," Mr Wright said.

The asset stripping of Owens Group continued today with the company announcing its third set of assets to be sold in as many days. Owens is 80 per cent owned by Mainfreight and 12 per cent by Toll Holdings. Owens shares closed 4c higher at 110 today, while Mainfreight shares also rose 4c to 180.

On the NZAX alternative market new listing Just Water International continued to make good, rising 2c to 68.

Other Stocks to move on NZSX today included: Dorchester Pacific Group up 10c to 275, GRD down 8c to 177, Infratil down 2c to 288, Michael Hill up 5c to 590, Nuplex down 4c to 517, NZX down 9c to 841, Ports of Auckland up 5c to 720, Port of Tauranga up 5c to 518, Promina down 5c to 425, Telstra up 7c to 522, and Tower down 2c to 162.

Total turnover was worth $88.83 million with 48 rises and 49 falls among 147 stocks traded.

- NZPA