NZ stocks: Sharemarket gains in morning trade

The New Zealand sharemarket's index of top 50 stocks was on the up in morning trade, following rises in key United States bourses overnight, a broker said.

Shortly after 11.30am, the benchmark NZSX-50 index was up 10.32 points at 3017.66.

The NZSX-All capital index was up 3.36 points at 967.41, with 30 rises and 21 falls among the 107 stocks traded so far today.

Hamilton Hindin Greene broker Grant Williamson said the market had taken its lead from offshore markets.

He said the market was quiet, and the positive tone was from investors eking out pockets of value here and there.

One or two stocks were benefiting from buyer demand, among them TrustPower, which was up 12c at 568.

"There's been a reasonable bounce back to day, but overall there's not much conviction (among investors)," Mr Williamson said.

Top stock Telecom was up 5c at 603, its $14.6 million turnover equating to 38.7 per cent of the $37.7m on NZX so far today.

Shares in the discount retailer The Warehouse gained 2c to 314 after horror sessions yesterday and on Wednesday.

The firm's shares have lost 25c over the past two days on news Australian firm Woolworths has bought the New Zealand supermarket assets of Foodlands.

Woolworths was also mulling a move into the discount retail market in New Zealand, which, if it happened, would see it competing with The Warehouse.

"I think it (The Warehouse sell-off yesterday) was a bit overdone, however, I don't expect that share price to bounce back strongly," Mr Williamson said.

Top three stock Fletcher Building was up 4c at 648, having lost 11c yesterday on profit taking.

Casino operator Sky City Entertainment was down 5c at 418, after yesterday losing 19c.

The company has been dogged by talk about the impact of smoking laws, and that its value could be eroded by more government curbs on gambling.

Elsewhere in the electricity sector, Contact Energy was down 1c at 699 and NGC Holdings was up 2c at 342, just 1c off the all-time high it set earlier this week.

Other stocks on the move included: Air NZ down 1c at 149, Fisher & Paykel Appliances dwn 1c at 307, Independent Newspapers up 14c at 615, Lion Nathan up 4c at 762, Michael Hill International down 15c at 740, Nuplex up 5c at 396, Sky TV down 7c at 652, Toll NZ up 6c at 310, and Wrightson up 1c at 170.

- NZPA