NZ stocks: Telecom leads market into positive territory

12.00pm

The New Zealand sharemarket pushed higher in morning trade with market behemoth Telecom leading the way, a broker said.

At 11.30am, the benchmark NZSX-50 index was up 8.00 points at 2775.60, while the NZSX-All capital index was up 3.33 points at 926.58.

Shares in Telecom were up 5c at 586 on turnover of $13.6 million. Market turnover was $34.7m.

Among the 117 stocks traded so far today were 32 rises and 30 falls.

ABN Amro Craigs broker Matt Willis said Telecom had got off to a good start in what was shaping up to be a quiet session on NZX.

"The offshore selling pressure has abated," Mr Willis told NZPA today.

"At the local level... the fundamental story is very compelling, on yield alone," he said, noting Telecom's move higher appeared to be a re-rating of the stock.

Shares in Carter Holt Harvey were up 1c at 230, while those in Contact Energy shares shed 2c to 585.

Before NZX's main boards opened this morning, Air New Zealand shares were placed in a trading halt.

Air NZ and Qantas have appealed a Commerce Commission ruling against their proposed tie-up in the High Court at Auckland, the decision due out early this afternoon.

Air NZ shares last traded at $1.85 on Friday.

"The companies say it's not (bad for consumers), but I just can't see how couldn't be at the end of the day," Mr Willis said.

Clothing retailer Postie Plus posted a July year net profit after tax of $4.01m, up from $1.24m reported in the preceding five month period.

Postie Plus announced a fully imputed final dividend of 4.06c per share.

Postie Plus shares were up 3c at 98.

There was little other corporate news about to encourage investor activity.

Meanwhile, Tower was unchanged at 206 after shedding 9c on Friday as Eric Watson's Hanover Group shed its 9.5 per cent stake.

Last week Tower said plans to spin-off its Australian wealth management business and list it on the Australian Stock Exchange.

"There's reasonable turnover in Tower again this morning, so the market's digesting that placement stock pretty efficiently," Mr Willis said.

Fisher & Paykel Healthcare was unchanged at 1480c after a stellar run last week, which saw it hit 2-1/2 year highs.

"The stock has certainly re-rated, and I think it's a pretty convincing re-rating as well," Mr Willis said.

"I think the market is just appreciating the option value in the story now," he said.

Other stocks on the move today included: AMP up 1c at 658, Baycorp Advantage down 3c at 340, Freightway down 8c at 247, NGC Holdings up 5c at 305, NorthPort down 9c at 258, Repco down 305, Steel & Tube down 7c at 428, and The Warehouse up 2c at 423.

A number of stocks are going ex-dividend today, among them Freightways at 6.9cps, Northport at 5cp (plus a 10cpc special), and Turners Auctions at 10cps.

- NZPA