NZ stocks: Market makes a quiet start to week

12.00pm

Share prices were mixed this morning as the sharemarket made a typically quiet start to the week.

By late morning the NZ50 index was up 8.01 points, or 0.41 per cent, at 1967.84 while the NZSE-40 capital index was up 4.41 points at 1937.93.

The market was fired up by the announcement today that Fairfax had offered Independent Newspapers Ltd $1.188 billion for its newspaper assets.

The sale excludes Victorian newspaper the Geelong Advertiser, although INL is considering offers for that paper which, if accepted, would value the combined Australasian publishing interests at $1.25 billion.

While INL shares remain in a trading halt until tomorrow, the news provoked another rise in its 66 per cent-owned pay television asset Sky TV, which was up 15c at a nine-month high of 410.

Telecom, which has underpinned the market for more than a month, continued to hold firm. Shares in Telecom, which is also a key shareholder in INL, were up 8c to 470.

Trade in Telecom made up almost half of the paltry total market turnover of $13.9 million.

Tranz Rail plumbed new lows, falling another 5 per cent, or 4c, to 67 cents. The stock has lost 83 per cent of its value in the last 12 months.

The company said it had settled out of court with Standard & Poor's over the dumping of the credit rating agency last week. Tranz Rail was about to be downgraded when Tranz Rail dismissed it.

Contact Energy fell 2c to 462 despite news that power prices are still holding up at high levels.

However, indications from Energy Minister Pete Hodgson that the Government is becoming increasingly impatient with the operation of the electricity market may be bad news for the likes of Contact.

TrustPower fell 10c to 400 because its share buyback is under threat due to doubts that it followed the correct procedure. The Takeovers Panel is holding an urgent meeting in Auckland today to consider whether it complies with the Takeovers Code.

The Warehouse fell 17c to 522, its lowest since July 2000, Westpac NZ was down 10c at 1630, casino operator Sky City lost 8c to 792, Fletcher Forests was down 1c at 102, and Guinness Peat lost 1c to 160.

Auckland International Airport made up some of last week's losses, rising 7c to 509, Fletcher Building was up 1c at 324, Restaurant Brands gained 2c to 148, and Telstra was up 5c at 470.

There were 34 rises and 23 falls among the 96 stocks traded.

- NZPA