NZ stocks: Telecom leads sharemarket higher

12.15pm

Top stock Telecom led the benchmark sharemarket index to a fresh intra-day high in morning trading today.

By 11.35am today the benchmark NZSX-50 gross index had risen 6.89 points to 2860.61, while the NZSX-All capital index rose 1.37 points to 950.09.

Bellwether stock Telecom was up 5c to 601, on turnover worth $15.8 million. On Friday, the telco's chief financial officer, Marko Bogoievski, outlined the company's dividend payout plan to a conference in New York. Telecom has stepped up its dividend payout ratio, aiming for about 85 per cent in fiscal 2005, up from 75 per cent for fiscal 2004, which could rise to 90 per cent the following year.

Total market turnover by 11.35am was worth $41.4 million, with 37 rises and 28 falls among the 118 stocks traded.

Powerco dropped another 3c this morning, to 207, taking it further away from the $2.15 per share takeover offer from Australia's Prime Infrastructure. Prime will send out its share takeover offer to Powerco shareholders this week.

New Zealand investors will be paid in cash and bonds, while a Takeovers Code exemption allows offshore investors to be paid fully in cash. This sparked massive turnover in Powerco shares last week, as buyers with offshore addresses snapped up shares from local investors who sought to offload their holdings.

More than 40 per cent of Powerco changed hands last week, boosting the percentage of shares owned offshore from less than 0.5 per cent to more than 20 per cent. Turnover has now calmed, but remained strong this morning at $6.4 million.

NGC Holdings was down 1c at 308. Indicative bids for NGC are due on Wednesday for the 66 per cent stake in the company held by AGL of Australia.

Ex-dividend stocks today included: Cavalier, ex-div 14.5 cents per share, was unchanged at 499, Feltex, ex-div 6cps, down 6c to 158, Hellaby Holdings, ex-div 19cps, down 19c at 590, Nuplex Industries, ex-div 13 cps, down 11c at 515 and South Port, ex-div 3.75 cps, unchanged at 120.

Other stocks on the move by 11.35 am: Carter Holt Harvey up 1c at 232, Contact Energy down 2c at 606, Auckland International Airport down 12c at 714, Ports of Auckland up 7c at 687, Sanford up 5c at 450, and Promina up 14c at 490.

- NZPA