NZ stocks: Contact propels NZ shares higher but Tower falls after result

New Zealand's sharemarket made respectable gains this morning as lead stocks Telecom, Carter Holt Harvey and Contact Energy all picked up.

The NZSX-50 gross index was up 10.55 points or 0.44 per cent at 2343.67 at midday while the NZSX-40 capital index was 9.22 points higher at 2229.44. Turnover was moderate at $25 million.

The indices' gains were underpinned by power generator and retailer Contact Energy, which quickly surged 11c to a new high of 550 amid speculation about what majority shareholder Edison Mission planned to do with its stake.

Telecom was up 2c to 512 and Carter Holt Harvey was up a cent to 180.

Insurer Tower fell 4c to 130 after posting a September year loss above expectations at $149 million. The half year net profit of $5.5 million disappointed and the company reported ongoing problems in Australia.

First NZ Capital's Barry Lindsay said the market's early move higher was partly down to the positive lead from overseas, and "just that more confident tone to equity markets that's been evident in the last two days of trading".

Wakefield hospital rose 10c to 212 on slim volume.

Also in the positive were: Tranz Rail, 4c to 143, RMG, 4c to 534, NZX, 5c to 511, GRD, 5c to 195, Ebos, 4c to 320 and Axa 4c to 307.

Wrightsons, which has lost 13c since the start of the week, was 2c firmer this morning at 135c.

Another recently in the gun, Restaurant Brands, was up 4c at 108.

New listing Repco was up 4c at 282.

Fishing company Sanford, which reports its annual result today, was up 4c to 534.

Rises numbered 42 among the 116 stocks traded and there were only 17 falls.

In New York, stocks rose slightly on the back of robust GDP and consumer confidence data. The Dow Jones industrial average was up 12 points at 9759.79. The Standard & Poor's 500 Index was up 2.42 points at 1054.50 and the Nasdaq Composite Index was up 1.33 points at 1948.47.

- NZPA