NZ stocks: Toll buyup of Tranz Rail dominates NZX

12.30pm

Early trading on the New Zealand sharemarket today was dominated by news of Australian logistics company Toll Holding's buyup of Tranz Rail stock.

By 11.30am the NZSX50 Gross Index was up 6.88 points or 0.32 per cent to 2172.30, while the NZSX 40 capital index had risen 4.52 points or 0.21 per cent to 2107.12.

Turnover was $42.19 million on 29.96 million shares traded with 21.48 million of these being Tranz Rail shares worth $20.18 million.

Toll Holdings said in a substantial shareholder notice to the New Zealand Exchange this morning it had increased its stake in takeover target Tranz Rail to 19.99 per cent with shares bought on-market. Toll previously held 10.1 per cent.

Tranz Rail shares were up a cent at 92c at 11.30am.

But other than Toll's purchase, the market had a quiet start to the day according to ABN Amro Craigs Equities retail adviser Bryon Burke.

The principal feature was "mixed prices amongst the leading stocks," Mr Burke said.

Market leader Telecom was up 3c to 517 by 11.30am "on very few trades".

"It's difficult to read much into that because of the light volume traded on market so far."

Lion Nathan was down 7c to 620 this morning. "A little bit of index selling there potentially on Lion Nathan is pushing their price down," Mr Burke said.

M eanwhile on overseas markets, US stocks rose yesterday as investors emboldened by encouraging data and optimistic earnings views snatched up beaten-down technology and other shares.

The blue-chip Dow Jones industrial average added 67.51 points, or 0.75 per cent, to 9,079.04, while the broader Standard & Poor's 500 Index rose 10.49 points, or 1.08 per cent, to 985.81.

London's FTSE 100 index closed down 26.2 points or 0.6 per cent to 4,041.7, European blue-chip shares closed flat, and in Japan the Nikkei dipped.

But Mr Burke downplayed any effect on the local market from overseas.

Today's early gain was "not really a lead from Wall St, it's more of sideways movement".

Mr Burke said "the only other thing of note for us mega traders, is today is the last day the stock exchange closes at 4pm."

From Monday NZX trading hours will be changed to 10am to 5pm.

Among stocks to rise in early trade were: Auckland International Airport up 9c to 599, BayCorp Advantage up 3c to 163, Carter Holt Harvey up a cent to 172, Contact Energy up 3c to 487, Fisher & Paykel Appliances up 15c to 1350, Hellaby Holdings up 4c to 432, Independent Newspapers Ltd up 7c to 425, Michael Hill up 5c to 455, NZX up 16c to 438, Sanford up 2c to 500, Tower Group up a cent to 149, and Trustpower up 5c to 456 .

Among stocks to fall were: Briscoe Group down 2c to 192, Fisher & Paykel Healthcare down a cent to 1180, Fletcher Building down 5c to 365, Sky City down 8c to 930, and the Warehouse down a cent to 512.

There were 46 rises and 23 falls among 114 stocks traded.

- NZPA