NZ stocks: Shares move higher in morning trade

12.10pm

The benchmark sharemarket index continued to move ahead in morning trade today, pushing higher from Friday's record close.

By 11.30am the NZSX-50 gross index was up 4.9 points to 2811.48. By contrast the NZSX all capital index was down 0.48 points at 934.87. Turnover was worth $33.78 million and there were 41 rises and 34 falls among 121 stocks traded.

Direct Broking's Peter Lynds said the market was "quite active in places... there's a few interesting things that have happened".

Market leader Telecom was up a cent at 588.

Contact Energy fell a cent to 602 after its independent directors this morning predictably advised minority shareholders against accepting Origin Energy's $5.57 a share offer.

The independent directors said in a statement the Australian company's offer price was at "a discount to Contact's recent share price history".

In July Origin bought a 51.2 per cent stake in Contact from the Californian power giant Edison Mission Energy for $5.67 per share and under the Takeovers Code was obliged to extent the offer to all shareholders. The offer to minority shareholders at $5.57 a share was less the 10c per share special dividend paid last month.

Telstra was down 10c to 500 after this morning announcing a A$750 million ($810 million) off-market share buy-back plan.

Telstra expects to return A$1.5 billion to shareholders each year for the next three years, through special dividends and/or share buy-backs, subject to maintaining board approved target financial parameters.

Carter Holt Harvey was unchanged at 229. The forestry company is said to be about to release the outcome of its forest review -- with speculation rife the company will announce the sale of at least some of its forest estate.

Vertex was up 5c to 170 after nearly 20 per cent of the company shares changed hands in off market trade.

Port of Tauranga, which was ex-dividend 13 cents per share, fell 5c to 535. Sky City Entertainment, ex-dividend 15.5 cps, fell 16c to 448.

Other stocks on the move this morning included: BayCorp Advantage up 4c to 328, Fisher & Paykel Healthcare up 28c to 1518, Mediaworks up 4c to 170, Michael Hill up 3c to 715, Mooring Systems down 5c to 390, Pumpkin Patch down 6c to 204, Pyne Gould Corp up 30c to 640.

- NZPA