NZ stocks: Market opens flat in quiet trade

12.00 pm

The sharemarket was flat in classic, thin Monday morning trading today.

The NZSE-40 index was up just 3.21 points at 1938.53 on volume of $24 million by 11.30am.

The local market failed to take inspiration from the Dow's 0.9 per cent gain on Friday and was looking to Australia for encouragement.

The two market leaders, Telecom and Carter Holt Harvey, continued to be soggy. Telecom was flat at 441 while CHH was down 3c at 144.

Contact Energy was strong, up 10c at a new record high of 415. Forsyth Barr Frater Williams executive director Don Turkingon said Friday's profit result was very strong and it had been surprising that Contact had eased back on Friday.

Star performer this morning was Eldercare although it came off its high of 25c. It was up 2c at 23 and the rights up 4.5c at 8c.

The former retirement village operator last week announced its first big move into pure healthcare in a $10.5 million cash and share purchase of Medical Laboratory Wellington.

Fisher & Paykel was down 8c to 1412. Credit Suisse First Boston has cut its rating on F&P to "hold" from "buy" due to a lower indicative price range for the float of the firm's healthcare unit.

While the revision was not significant and only indicative, the strong state of the healthcare sector supported a "more robust" price range for each ADS, CSFB analyst Sarndra Urlich said in a report dated October 24.

Waste Mangement was up 3c at 634, having leapt 15c on heavy volume on Friday. The company is holding a media briefing today.

Fletcher Building rose 4c to 274, just 1c off its record since being spun off. It was trying to break into new territory, Dr Turkington said.

Air NZ B shares were up 1c at 30c while Auckland Airport was down 1c at 326.

The Warehouse was up 9c at 634 and Williams and Kettle was up 18c to 390 on light volume. Horizon was down 47c at 1353 also on a very small parcel of just 110 shares.

Infratil was up 2c at 170, Blis was up 6c to 76c, GDS up 5c to 195, Pyne Gould down 3c to 122, Sky City, up 4c at 1190, Tower, up 5c at 510 and Trust Power up 10c at 340.

There were 45 rises and 25 falls among the 113 stocks traded.

- NZPA