NZ stocks: Market almost unchanged in morning trade

1.00 pm

The New Zealand sharemarket opened lower today, after its 3 percent boost over the previous two days of the holiday-shortened week.

At 11am, the NZSE-40 index stood at 2079.50 - 3.72 points - or 0.18 per cent - lower and almost unchanged from the opening 2079.60.

The NZSE-SCI capital index was 3.74 points - or 0.07 per cent - higher, at 5411.76 - up from the opening 5408.43.

Turnover at 11am was 13.20 million shares, worth $34.73 million and of the 119 shares traded, 27 rose but 36 fell.

Nigel Scott of ABN Amro said the sharemarket was consolidating after two busy days, with not much order flow to get things moving.

Appliance and healthcare company, Fisher and Paykel, continued to rise after its $11.04 million bottom-line March year profit yesterday.

The company could not reveal many more details about the proposed split of its healthcare and appliance businesses but confirmed it was likely to happen by the end of the year.

F and P shares opened a further 35c higher at 1080 today and by 11am were 55c firmer at 1100.

"I'm struggling to get a grip on it around these levels. I think it's fantastic a kiwi company has been forced by the market place to change their strategy, and concentrate and create value on the healthcare side, which has effectively given them a 150 percent boost, which is a testament to the fact the market place has got it right," Mr Scott said.

"Well done to management to create some value, well done to the market to continue to value it - I just think around here people will start to question, A, valuation and, B, is it time to take some profits."

Meat exporter Richmond was a cent higher at 319. PPCS rival bidder, North Meats, is free to start its bid for a 60 per cent stake in the company today.

Both North Meats, the South Island-bMichael Cullen said - in a statement through his spokeswoman.

"The Government has made no decision at all and won't make any until it receives a formal proposal," the statement said.

Dr Cullen would not elaborate further.

Market heavyweight, Telecom - which has a 23 percent weighting in the Top 40 index - was 6c lower at 570 on turnover of 1.56 million shares worth $8.93 million.

Lion Nathan was 5c higher at 495. The independent directors of New Zealand's largest winemaker, Montana, are scheduled to meet today to decide the fate of Lion Nathan's disputed stake, company secretary John Nuthall said yesterday.

Four independent directors have been charged with determining what to do with Lion's 62 per cent holding in the winemaker after a NZ Stock Exchange committee found the brewer breached listing rules when it bought a key parcel of shares in the company in February.

"I would be surprised if there was any decision, there are too many procedural steps," Mr Nuthall said.

Montana shed 6c to 480.

Pay TV operator Sky TV was a couple of cents higher at 345 and part owner, Independent Newspapers shed 5c to 370.

Infratil, which went ex-dividend 5.25c on Tuesday, gained a couple of cents to 145 and wood-products' firm, Carter Holt Harvey, was a cent lighter at 185, on turnover of 930,484 shares, worth $1.72 million.

Fletcher spin-off Rubicon was a cent lower at 57, Fletcher Building was steady at 238 and so was Forests at 31.

The Warehouse shed 5c to 590, Contact Energy rose a cent to 286, Trans Tasman Properties was steady at 23 and Waste Management was steady at 385.

Among other shares, drinks company Frucor was steady at 163, casino operator, Sky City was steady at 995, financial-services' company Tower was a cent lower at 544, AMP shed 5c to 2545 and Baycorp lost 6c to 1206.

Stocks fell in New York on Wednesday, when chilling forecasts from two of the market's largest blue-chip names - including computing giant Hewlett-Packard - stifled buyers in the early-June rally.

The Dow Jones average index of 30 industrials fell 105.60 points - or 0.94 per cent - to 11,070.24, the tech-rich Nasdaq composite index shed 15.93 points - or 0.71 per cent - to 2217.73 and the broader, Standard and Poor's 500 composite index lost 13.54 points - or 1.05 per cent - to 1270.03.

- NZPA