NZ stocks: Telecom rebound underpins market

12.00pm

A partial rebound by Telecom underpinned the sharemarket in morning trading.

The market leader lost 8c yesterday, but regained 2c today to sit on 594 just before noon.

The influence from Wall Street was positive for the fourth consecutive day with the blue chip Dow Industrial average climbing above 10,000 for the first time in two weeks.

Here, the NZSX gross index was up 4.36 points at 2748.21 at 11.40am, while the NZSX all capital index was down 0.13 at 922.02.

Turnover was worth $38.6m with $12.5m of that in Telecom.

Brokers said the market was very quiet.

Fisher & Paykel Appliances, which lost 13 per cent in the last week in the wake of Monday's result, initially recovered 6c, but later in the morning turned negative again with a 2c fall to 418.

There was good turnover in Contact Energy which was ex its special 10c dividend today. It was down by that amount to 580.

Wrightson was up 1c at 153 after reporting a reported net profit after tax of $10.3 million, down 44 per cent.

It also said today it would make a $1.56 buy back offer to all shareholders to buy one out of every six shares they hold in the company.

Mr Smith said the buy back offer would be limited to 23 million shares.

Mainfreight was unchanged on 200 after reporting its first quarter net profit rose 86 per cent to $2.13 million, excluding the results of its 80 per cent owned Owens Group. If the latter is included, the logistics and transport company's result was a loss of $212,000. There was heavy turnover of 2.4 million shares traded, worth $4.8m.

Investors were also unmoved by Calan Healthcare Properties Trust's reported 24 per cent rise in net profit for the year ended June. It was untraded, having closed yesterday at 87c.

Not so with Wellington Drive Technology, which fell 8 per cent, or 4c, to 45, after the Auckland-based motor manufacturer reported a widened $2.94 million June year loss.

While sales were up, brokers did not approve of comments about it being a year of delays.

In contrast, Ebos' result was well received. It delivered a record annual profit of $8.4m, up 31 per cent, and rewarded shareholders with an increased dividend. Its shares rose 8c to 450.

Independent Newspapers was up 1c to 473. It is expected to report tomorrow and brokers are hoping for information about its future and that of its 66 per cent owned Sky TV.

Rarely-traded Colonial Motors fell 12c to 578.

There were 28 stocks, matched by 28 down among the 112 traded.

- NZPA