NZ stocks: Major indices up in 'strange day' on share market

12.00pm

The sharemarket tended towards the positive in morning trade, with both major indices on the rise in what a broker said was a "strange sort of day".

At 11.30am the benchmark NZSX-50 gross index was up 4.05 points, or 0.19 per cent, at 2167.30, while the NZSX-40 capital index was up 2.96 points, or 0.14 per cent, at 2099.23.

Both indices had tipped into the red in trading so far today.

There had been $13.1 million of shares traded on volume of 10.1 million. Among the 101 stocks traded were 31 rises and 18 falls.

Market leader Telecom led the way, having sold $4 million worth on turnover of 769,934. The telco's shares were up 3c at 523.

ASB Securities broker Stephen Wright said the seesawing indices and low volumes marked a "strange sort of day" on NZX.

"It's very, very quiet. There's just no volume of shares at all," he told NZPA today.

"When you look at the volume's going through on our leaders there's just nothing there. Telecom's hasn't even done a million shares yet," he said.

"I would say there's an absence of sellers and the upcoming reporting season is a factor in keeping market confidence up at the moment.

"Low interest rates mean that equities remain a viable asset class," Mr Wright said, noting the market had an underlying firmness.

The Reserve Bank's move to cut the official cash rate by 25 basis points to 5 per cent had reinforced the market, he said.

The other mover in morning trading was troubled insurer Tower, its parent shares having traded $1.4 million on volume of 1.2 million.

Tower shares were up 1c to 122, while its rights were being traded up 1c at 29.5. Tower's rights issue had raked in $1.2 million on turnover of 4.1 million so far this morning.

Shares in cash-strapped Tranz Rail were unchanged on 100.

In the United States, the major market indices all slipped in overnight trading.

The Dow Jones industrial average fell 81.73 points to 9112.51, while the broader Standard & Poor's 500 Index dropped 7.01 points to 981.60.

The technology-laced Nasdaq Composite Index declined 17.73 points to 1701.45.

Shares on the rise on NZX included: Auckland International Airport up 2c to 595, AMP up 1c to 559, Contact Energy up 2c to 475, Fisher and Paykel Healthcare up 5c to 1180, Fletcher Building up 3c to 398, Independent Newspapers up 4c to 418, New Zealand Refining up 4c to 1660, and Pacific Retail Group up 2c to 212.

On the downside were: Ebos down 3c to 300, Lion Nathan down 2c to 610, Nuplex down 3c to 360, NZX down 5c to 470, and Sky TV down 4c to 465.

- NZPA