NZ stocks: Market returns to quiet trading pattern

12.15 pm

The New Zealand sharemarket was trading quietly today with little in the way of corporate news expected.

By mid-morning the NZSE-40 capital index was up 4.60 points, or 0.24 per cent, at 1914.61, with turnover of 7.99 million valued at $18.79 million.

Topping turnover by value was Telecom with $3.45 million.

Philip Hardie Boys of Credit Suisse First Boston said the market was in need of news to get it moving, with no great cues from overseas markets after a fairly busy day yesterday.

"We'll probably see a relatively quiet trading pattern today. A little bit more activity on some index-related buying yesterday seemed to spark a bit more interest," Mr Hardie Boys said.

"There has been a bit of index activity in the market place from international players positioning themselves with the upcoming changes (in the Morgan Stanley Capital International Index) in November.

"So we really need specific news to help create a little bit more activity," he said.

With Air New Zealand's $885 million rescue package approved, and the first part already paid, the market has turned its sights to the takeover bid for Contact Energy.

By mid-morning Contact was down 2c at 396, 12c above the takeover offer launched on Friday by US-based parent company Edison Mission for $3.85 per share.

Several brokers issued a "don't sell" notice on Contact shares yesterday, believing the offer did not place enough value on the shares.

After good gains yesterday many quality stocks lost ground on light volume.

Air NZ A shares were down 2c at 29, Auckland Airport lost 3c to 336, Baycorp was down 10c at 1165, Fisher & Paykel shed 9c to 1355, and The Warehouse was down 6c at 622 after a 23c gain yesterday.

Telecom was up 3c at 435, Carter Holt Harvey was up 4c at 154 ahead of its fourth quarter results out tomorrow, Fletcher Building rose 3c to 265, Sanford was up 10c at 660, and Sky City casino rose 6c to 1141.

There were 34 rises and 30 falls on the 108 stocks traded.

On Wall Street on Monday, the Dow Jones industrial average edged up 3.46 points, or 0.04 per cent, to close at 9347.62; the broader Standard & Poor's 500 was off 1.67 points, or 0.15 per cent, at 1089.98; and the Nasdaq composite dropped 7.09 points, or 0.42 per cent, to 1696.31.

- NZPA