NZ stocks: Tranz rail rises helps NZ market firm

A firming in Tranz Rail's share price after Toll increased its bid, and a fall in the share price of the Warehouse after a disappointing result, were the highlights in morning business on the sharemarket today.

Tranz Rail rose 7c to 107 after Toll Holdings raised its bid to 110c from 95c. Tranz Rail directors and the previously opposed significant minority shareholders have now said they support the bid.

ABN Amro Craigs broker James Lock said it looked like the bid would now be successful.

"What's the clincher is that the directors have advised to accept the new offer," he said.

The Warehouse shares fell 15c to 510 after the discount retailer reported its July year net profit fell 8 per cent to $75.4 million from $82.2 million a year earlier.

The fall in profit was blamed on its Australian operations which posted an operating loss of A$11.9 million ($13.6 million) compared with a year ago profit of A$2.2 million.

"It looks like the market's a little disappointed with the result," Mr Lock said.

Fellow retailer Briscoe was unchanged on 174 after reporting a 3 per cent increase in net after-tax profit for the half year ended July 31, while sales were up 10 per cent.

The operator of the Briscoes Homeware and Rebel Sport chains recorded sales of $140.9 million, compared with $128.09 million for the same period last year.

Mr Lock said that overall the market was "quietly firmer" after a bit of selling was absorbed yesterday.

The NZSX-50 gross index was up 3.44 points to 2222.32 at 11.40am while the NZSX-40 capital index was up 3.28 at 2147.24.

Market leader Telecom was up 2c to 508 on turnover worth $19.2 million compared with the market total of $53.4 million. There appeared to be portfolio activity with sizeable purchases of Fletcher Building, Sky City, Contact Energy, Auckland Airport, Fisher & Paykel Healthcare, AMP, and Promina.

Air New Zealand lifted another 2c to 64c, its highest level in over a year. It has risen nearly 30 per cent in two weeks on speculation its proposed alliance with Qantas will get the go-ahead from the Commerce Commission.

Pacific Retail rose another 5c to 225 after its deal yesterday to buy Britain's third largest appliances retailer from receivers for $48 million. The Eric Watson-controlled stock rose 8.3 per cent yesterday.

Auckland Airport rose 4c to 639, F&P Appliances rose 4c to 1446, Fletcher Building was up 5c to 415, Promina was up 2c at 340, and Sky City was up 2c at 875.

There were 29 stocks in the positive in all and 26 declines among the 103 traded.

Technology stocks lifted Wall Street as some bullish brokerage calls on computer chip stocks helped propel the tech-heavy Nasdaq to its longest streak of gains in more than 3-1/2 years.

The Nasdaq Composite Index has risen in seven straight sessions for the first time since February 8, 2000, according to MarketHistory.com. The broader Standard & Poor's 500 index has notched gains eight sessions in a row for the first time since March 21, 2003.

The Dow Jones industrial average rose 19.44 points, or 0.2 per cent, to 9587.90, the S&P 500 gained 1.7 points to 1027.97 and the Nasdaq gained 16.08 points to 1868.98.

- NZPA