NZ stocks: Few major stocks traded in lacklustre market

The sharemarket got off to a lacklustre start this morning with few major shares changing hands in trading so far today.

Tranz Rail shares dipped 3c to 89 at 11.30am today after yesterday peaking at 102, up 28 per cent, on the heels of the Government offering it a financial rescue package on Friday.

The cash-strapped rail operator traded $1.8 million on volume of two million late this morning.

Market leader Telecom had slipped 2c to 506 at 11.30am, having traded $3.5 million on turnover of 680,292.

The benchmark NZSX50 gross index gained 2.05 points to 2111.45 and the NZSX40 capital index notched up 3.00 points to 2072.69.

Forsyth Barr broker David Price said stock movements on the market early this morning had come from trading after close yesterday.

"You only have to look at Telecom to see that not much is going on," he told NZPA today.

"From here I wouldn't expect Tranz Rail to slip back too much further," Mr Price said.

"They've got the lifeline, there's just a few more details that the market needs and, until there's a bit more clarity, I think you'll see the volume slow down a bit."

Trading of its stocks was halted at 80c at 2.30pm on Friday shortly before Finance Minister Michael Cullen announced the rescue package, which shareholders have yet to accept.

The Government and Tranz Rail have signed a heads of agreement, which includes the Government paying $76 million for a 35 per cent share of the rail operator through a rights issue at 67c a share.

It would also inject $44 million immediately, buy the national rail network for $1, pay $50 million for associated assets and spend $100 million over five years on network maintenance.

So far today, there were 28 rises and 32 falls in the 110 stocks traded. There was $14.2 million of stocks traded on a volume of 7.3 million.

In other movements on the market today, Auckland Airport was up 4c to 554, Fisher and Paykel Appliances was up 2c to 1290, F & P Healthcare was up 1c to 1130, NZ Refining was up 25c to 1675, Lion Nathan was up 10c to 650, Fletcher Building was up 6c to 376, and Pacific Retial had gained 5c to 225.

On the down side were, AMP down 5c to 570, Sky City slipped 10c to 100, NZX shed 8c to 410, Westpac dropped 5c to 1795, and JPM Fleming had lost 50c to 1000.

- NZPA