NZ stocks: Shares open up ahead of busy corporate week

12.00 pm

The New Zealand sharemarket was trading in positive territory this morning ahead of a week packed with corporate news.

The benchmark NZSE-40 index was up 11.98 points, or 0.61 per cent, at 1970.19 by just after 11am, on turnover worth $12 million.

"Overall we are just finding our feet for a Monday morning, but the trend I think today, and probably going through until tomorrow, is positive," Forsyth Barr Frater Williams equity dealer Alan Wills said.

The corporate diary this week includes Telecom's first quarter result and Fisher & Paykel's listing on the Nasdaq tomorrow, a Reserve Bank announcement on rates on Wednesday, and the release of an independent appraisal report into French group Danone's bid for Frucor.

Telecom was up 10c at 460 ahead of the result, on turnover worth $2 million.

Telco analysts expect the company to announce a flat but solid quarter profit, reflecting the ability of incumbent telcos to weather economic downturns.

Last year Telecom posted a $161 million profit in the first quarter.

"I don't think the market is looking for any surprises there," Mr Wills said.

"The key issue for Telecom is whether they can get an earner out of their Australian investment. They have got over a $2 billion investment over there and it is a question of when it can earn its cost of capital."

Fisher & Paykel closed on Friday -- its last day of trading prior to the split of its healthcare and appliance divisions -- down 24c at 1350.

The company is dividing because its slow-growing home appliance business has led investors to mark down the value of the expanding health enterprise.

The two divisions will begin trading as standalone entities on November 14, with a partial float of the healthcare division on the Nasdaq on Tuesday (Wednesday morning NZT).

The indicative price range in the US prospectus is $US16 to $US18 ($38 to $43) per American depositary share.

Takeover target Frucor was up a cent at 242.

In other news, homeware and sporting goods retailer Briscoes confirmed it will become only the second company to step up to the exchange this year, with a $40 million Initial Public Offer for around 20 per cent of the company.

The company's directors expect to have offer documents registered by November 22 and the issue is set to close on December 12.

Mr Wills said Briscoes would be a "welcome addition to the market", with a forecast market capitalisation of $210 million -- making it the country's second-largest listed retailer, behind discount giant, The Warehouse.

"He is a very clever operator (Briscoe chairman) Rod Duke. He has got two very good brand names there in Rebel (Sports) and Briscoes and without a lot of competition in both those markets."

The offer was delayed following the September 11 attacks and its announcement now was a sign the market was back on track, Mr Wills said.

"The fact that they can bring that back to the market now just shows you how the markets have regained their composure really."

In other movements, Natural Gas Corp was up 3c at 128 after a changing of the guard at 10 per cent shareholder, the Hutt Mana Energy Trust at the weekend, which could pave they way for Australian Gas Light to take over the company.

Air New Zealand B-shares were down a cent at 28c following an announcement the Government has completed due diligence on the company.

Other stocks to lose ground included Fletcher Building, down 7c at 261, Contact, down 2c at 408, Pacific Retail, down 4c at 186, Tranz Rail, down 3c at 447 and United Networks, down a cent at 831.

On the flipside, The Warehouse was up 10c at 650, market newcomer Kirks added 10c to 500, Sky City was up 9c at 1249, Sky TV added a cent to 356 and Richmond was up 2c at 122.

All up, rises outnumbered falls by 40 to 26 among the 104 stocks traded.

In the United States on Friday, stocks eked out small gains as investors weighed hopes for an economic rebound next year against bleak earnings news from household names like HJ Heinz & Co.

The Dow Jones industrial average ended up 20.48 points, or 0.21 per cent, at 9608.00, the tech-laced Nasdaq was up just 0.71 of a point at 1828.48 and the broader Standard & Poor's 500 index edged up 1.77 points, or 0.16 per cent, to 1120.31.

US investors are out of the picture today for the Veteran's Day holiday .

- NZPA