NZ stocks: Market opens in positive territory, but quiet

12.00pm

The New Zealand sharemarket was subdued today, with the United States Labour Day holiday removing much activity around the globe.

By mid-morning the NZSE-40 capital index was up 8.63 points, or 0.42 per cent, at 2066.41.

Turnover of $15.97 million, valued at $57.12 million, was boosted by Infratil's sale of 3.76 million Port of Tauranga shares today for $27.65 million.

David Cleal of Macquarie Equities NZ said debt collector Baycorp Advantage was weaker today -- down 16c at 410 -- after its annual loss of A$299.9 million ($356.4 million) yesterday.

"It was perhaps a little below market expectation," Mr Cleal said.

In contrast, the other company to report its June year results yesterday, Auckland International Airport (AIA), saw its share price slightly firmer in reaction to a net profit of $71.5 million.

AIA rose 5c to 414.

"The thing that hangs over the stock is the sale of the Auckland City Council's stake, and the market's in two minds about where that stock's going to end up," he said.

"Our view is that the stock will be sold to a trade buyer (in one parcel), and that overhang is going to be absorbed."

The other view was that the council would sell its 25 per cent stake on-market, to institutions. "For that reason the share price hasn't been as good as you might expect."

Tranz Rail shares gained some ground today after hitting fresh lows again yesterday of 157. By mid-morning, the rail operator was up 5c at 162.

"I think the issues around the stock -- whether there's going to be a rights issue -- are there in the market, and I would have thought the stock would have started to see some support at these levels but we haven't really seen that," Mr Cleal said.

Investors were wary of the prospect of a discounted capital raising that could force a ratings downgrade. Such nervousness saw the stock fall 15 per cent in value last week and prompted a "please explain" from the stock exchange.

The company said it knew of no new information, but noted its banking arrangements were up for renewal next month.

Infrastructure investor Infratil announced today it had sold the shares at 735 per share. Infratil owns 20 per cent of the port, and the sell-down equates to 5 per cent of the company.

The shares will be quoted separately, on an ex-dividend basis, until the record date of October 18.

Infratil shares last traded up 1c at 193.

Telecom, which went ex-dividend yesterday for 5c, remained firm today, up 7c at 512 shortly after the market opened.

Air New Zealand gained 2c to 60, rebounding slightly after two incidents involving wing parts falling off planes.

Tourism Holdings Ltd was up 2c at 95 after announcing yesterday the sale of its Treble Cone skifield would go ahead in December. Lion Nathan was up 7c at 625, Fletcher Building gained 2c to 287, Guinness Peat Group was up 1c at 175, Carter Holt Harvey rose 1c to 177, Sky City was up 3c at 708 and The Warehouse rose 2c to 728.

On the down side, Fletcher Forests lost 1c to 24, Contact Energy was down 3c at 390, and Fisher & Paykel Healthcare lost 5c to 965.

Recently launched Skellmax Industries, an amalgamation of Skellerup and dairy pump manufacturer Flomax, fell 1c to 108 as it announced an annual result slightly ahead of forecast today.

Most moves were on light volume.

There were 33 rises and 28 falls on the 100 stocks traded.

- NZPA