NZ stocks: Shares trade sideways

12.40pm

The sharemarket's benchmark index moved in a sluggish, sideways fashion with a mildly negative bias this morning.

By 11.30am the benchmark NZSX-50 gross index had slipped 3.50 points to 2678.16, while the NZSX all capital index was down 1.50 points to 899.43.

Turnover by 11.30am was $23.19 million and there were 28 rises and 31 falls among the 111 stocks traded.

Direct Broking's Peter Lynds said there was "not a heck of a lot happening" as the market adopted a wait and see approach to a number of issues.

These included the prospect of higher interest and foreign exchange rates and the sale of Edison Mission's controlling stake in number three stock Contact Energy.

Contact shares were up 2c to 582 by 11.30am but were showing volatility.

The prospect of a announcement on the sale of Edison Mission's stake was continuing to inspire a state of breathless anticipation over much of the market.

Elsewhere across the top of the board, market leader Telecom was down a cent at 581, Carter Holt Harvey was flat at 206, Fisher & Paykel Appliances was down 2c to 455, and Infratil was up a cent to 300.

Fletcher Building down 8c to 473 on what Mr Lynds said was negative sentiment about the building supplies sector. Yesterday, the New Zealand Institute of Economic Research reported a net 49 per cent of firms in the building supplies sector were pessimistic about their prospects in the coming six months.

Jewellery retailer Michael Hill rose 5c to equal its year high of 600. Yesterday the company preliminary full years sales figures showing a strong performance by its Australian operations.

Shares in Hawke's Bay meat processor Richmond were placed on a trading halt pending the release of "material information" at 10am.

South Island meat processor PPCS which secured a controlling stake in Richmond earlier this year after a protracted battle has now offered $3.11 a share to acquire the 37 per cent of Richmond it does not already own.

An independent valuation put Richmond shares in the $3.48 to $4.01 band. Richmond shares last traded at $3.12 on Monday.

Toll NZ shares were up 4c to 182. This morning it was reported that the government may reveal next week what Toll will pay for sole use of New Zealand's rail network.

Other stocks to trade by 11.30am included: Mike Pero down 2c to 88, Northport up 3c to 263, Pacific Retail Group up 4c to 209, Ports of Auckland down 5c to 685, Steel & Tube Holdings up 2c to 424 and TrustPower up 4c to 489.

- NZPA