NZ stocks: Briscoe trade should brighten the market

By SIMON HENDERY

Trading in market newcomer Briscoe Group will provide one of the highlights on the sharemarket this week.

Retailer Briscoe only the second new main-board listing this year is due to begin trading on Thursday and investors out to "stag" their allocations are expected to make a tidy profit.

Nigel Scott, head of institutional dealing at ABN Amro, said there had been strong interest in the Briscoe float.

"That's a good sign. The market does have a bit of liquidity in it at this point in time and we should be looking for a very positive listing."

Mr Scott said he expected the $1 shares to add at least 20 per cent on the first day, and other brokers were picking an even higher spike.

Mr Scott also said there were no signs that the recent strengthening in the New Zealand sharemarket was waning.

Overseas orders from investors increasing their weightings of New Zealand stocks have spurred the rise in the market.

"Several stocks in our market are starting to trade at, or close to, their valuation levels," Mr Scott said.

Statistics of interest to investors and due for release this week include October retail sales figures (released today), October merchandise trade, with an update on exports, and terms of trade for the September quarter (Wednesday), November food price index and September quarter manufacturing activity (Thursday).