NZ stocks: Kick-start from Contact

By IRENE CHAPPLE

A drowsy sharemarket will get a shot of espresso when Contact Energy's half-year result is released on Thursday.

JBWere analyst Peter Sigley said he expected the company to report a slight improvement on last year's half-year profit of $35.7 million.

Sigley said the retail sector was strong (with higher tariffs and more customers), the gas sector remained healthy and the wholesale market - while harder to pick - was also doing well.

Overall, the company's cashflow was healthy, he said.

On Friday, PowerCo is holding a shareholder meeting to approve an issue of up to $100 million in capital bonds to refinance its purchases last year of the Hutt Valley and Porirua Basin gas networks.

Otherwise, the sharemarket will have a mellow week, in the midst of what one analyst describes as a six-week lull after a busy season of results.

Reserve Bank Governor Don Brash's surprise resignation was also unlikely to have a significant impact, commentators said. Some uncertainty by overseas investors may be seen in the short term but economists said that was unlikely to be long-lasting or particularly damaging.