NZ stocks: Shares mildly positive after better night offshore

The New Zealand sharemarket traded in mildly positive territory this morning after a better night in offshore markets.

The benchmark NZSE-40 index was up 9.51 points at 2048.44 by shortly after 11.30am.

Investor interest was limited, however, with just 8 million stocks, valued at $28 million changing hands by mid morning, topped by Fisher & Paykel's $12 million, followed by Telecom's $4 million.

"It was a pretty quiet start to the day," ABN Amro institutional dealer Nigel Scott said.

"Across the broader market, everyone seems to be pretty well bid."

Star performer Fisher & Paykel piled on further gains, trading up 10c at 1295.

Telecom firmed 10c to 525, while rival Australian telco Telstra was up 8c at 681 - taking a breather from the recent poor sentiment afflicting telcos worldwide.

Fletcher Building added 4c to 260 after figures released yesterday showed the Australian residential construction sector is on the mend.

Data from the Australian Bureau of Statistics showed housing finance jumped 9.8 per cent in May to a record 52,717 dwellings.

It was the biggest monthly increase since April 1986 and the highest number of dwellings financed in any month since the ABS started recording the data in 1975.

Takeover target Montana was up 10c at 450 on very light turnover after the Takeovers Panel yesterday made an order restraining Lion Nathan from acquiring any shares in the winemaker.

The panel said Lion may not have complied with the new Takeovers Code when making an offer for Montana shares this month at two different prices.

The panel meets on Monday to decide whether to exercise its powers under section 32 of the Takeovers Act.

Mr Scott said the uncertainty surrounding the stock had kept most investors on the sidelines.

"I think everyone is confused because it seems to be always going back to the panel.

"People are waiting for the clarity of decision until they actually make a decision themselves."

Lion Nathan was unchanged at 540, untraded since yesterday's close.

Air New Zealand B-shares firmed a cent to 142.

The national carrier will today present its formal proposal to government officials seeking approval for Singapore Airlines to increase its stake in the airline.

Singapore Airlines wants to increase its ownership of the airline from 25 per cent, but needs Government approval because it will breach foreign ownership rules.

Under those rules a single foreign airline is not allowed to own more than 25 per cent and total ownership by foreign airlines is capped at 35 per cent.

The move would give Air NZ access to much-needed capital to help fund a multi-billion dollar fleet and services upgrade for its troubled subsidiary Ansett Australia.

The Port of Tauranga was steady at 675 after announcing yesterday it was spending $300,000 to expand the capacity of its inland port facility, Metroport Auckland - a partnership with Tranz Rail.

Metroport operates 24 hours a day, seven days a week and has doubled the amount of cargo handled since it started two years ago.

Rival operator, Ports of Auckland was up 3c at 605.

In other movements, Baycorp was down 15c at 1275, DB Group was down 4c at 536, Sky City shed 5c to 1145, The Warehouse was down 1c at 544 and Wrightson was up 1c at 97c.

In all rises outnumbered falls by 31 to 20 among the 109 stocks traded.

The market would likely remain fairly quiet throughout the day, Mr Scott said.

"We are in a bit of a gap season until the August reporting season now."

In the US overnight, blue-chips and technology shares scraped out mild gains but the broader market slipped as investors juggled profit warnings from companies like software maker Comverse Technology with an urge to buy at compelling lows.

The Dow Jones industrial average rose 65.38 points, or 0.64 per cent, to 10,241.02 , while the Nasdaq Composite Index gained 9.25 points, or 0.47 per cent, to 1972.04.

But the broader Standard & Poor's 500 Index declined 1.34 points, or 0.11 per cent, to 1180.18.

- NZPA