NZ stocks: Contact slips as Edison mops up

Edison Mission completed its stand for Contact Energy stock yesterday, and elsewhere in the sharemarket Brierley Investments and Air New Zealand rallied.

The NZSE-40 capital index finished up just 2.08 points to 2089.65, with rising stocks outnumbering falls 53 to 38 among the 143 traded.

Smaller stocks were firm, the NZSE-SCI capital index gaining 24.59 points to 5319.41.

Contact accounted for $91.07 million of total turnover worth $162.35 million. It slipped 7c to $2.86 after the long awaited move by cornerstone shareholder Edison to increase its stake was completed at $3.10 a share. It has bought 7.4 per cent, taking its stake to 50.1 per cent. Edison said it would not go beyond that.

Macquarie Equities' Nathan Lewis expected Contact shares to drift now that an element which has underpinned the stock's price several times in the past has been removed.

Richard Leggat, a director at UBS Warburg, said the market elsewhere was quiet, particularly given the amount of money looking for a home after the recent takeover action.

"Air NZ was up strongly following some fairly bullish comments from chief executive Gary Toomey," Mr Leggat said. The market was surprised at the extent of his optimism.

The Air NZ As closed up 1c at $1.00 while the Bs, which foreigners can own, surged 8c to $1.43. Brierley Investments, led by chief executive Greg Terry, jumped 5c to 61c. BIL is selling its 28.7 per cent stake in Australia's James Hardie Industries for $A567 million ($710 million).

"The stake disposal is seen as a good move, as some of Brierley's assets are not performing that well and with a relatively small holding they don't have much control. The funds can be put to better use," said an analyst from Brierley's home town, Singapore.

The share price of Singaporean beverage group Fraser & Neave rose sharply on hopes Brierley would use the funds to raise its stake. Brierley holds 10 per cent and wants to increase that.

Eventures eased 1c to 28c. Former chairman Craig Heatley wants to buy the 64 per cent of the company owned by Softbank and News Corp subsidiary, epartners. That would see interests associated with him owning 80 per cent. Eventures advised shareholders not to sell while it assesses Mr Heatley's move.

TrustPower, with Australian Gas Light joining the ownership fray, was up 5c at $3.55.

Telstra lost 10c to $7.90. It said revenue growth across the telecommunications industry in Australia, where Telecom NZ also has operations, had slowed.

Telecom fell 4c to $5.92.

Tower surged 14c to $5.90 ahead of today's half-year profit result, and DB, likewise reporting interim numbers today, was steady at $5.50.

Carter Holt Harvey was up 4c at $1.82, Fisher and Paykel shed 10c to $9.20, and Fletcher Building added 2c to $2.40.

Sky City gained 10c to $10.10, GPG was down 2c at $1.56 and The Warehouse lost 7c to $5.56.

- NZPA