NZ stocks: Market waits on news and fresh blood

The market was focused on pending announcements and upcoming floats today in a quiet day's trading.

The NZSX-50 gross index fell 1.13 points to 2689.88, while the NZSX-All capital index was up 0.47 points at 904.35.

Bellwether stock Telecom was up 1c at 587, on turnover worth $40.1 million.

There were just as many ups as downs today, with 51 rises and 51 falls among the 154 stocks traded.

Matt Willis of ABN Amro Craigs said the market was waiting to hear the outcome of the sale of a 50.1 per cent stake in Contact by the US-based Edison Mission Energy, and also had an eye on the upcoming listing of CanWest MediaWorks.

"Once CanWest lists, and should there be some money coming back into the market from the corporate activity in the energy sector you might see volumes starting to pick up again," Mr Willis said.

Contact Energy fell 10c to 578. Speculation mounted that Edison would make an announcement about the sale of its Asian and Australasian assets -- including its stake in Contact. But no announcement was made before the close of trading today.

Mr Willis said the stock had been quite volatile lately due to speculation about a trade sale of Edison's stake and its possible effect on the share price.

He said although bidders may only want to buy Edison's stake, because it is over 50 per cent, they would be forced to make an offer to buy out all other shareholders.

"It only stands to reason that they negotiate, where Edison are going to be happy dealing it, and make it a price that won't compel other shareholders to accept," Mr Willis said.

Meanwhile CanWest MediaWorks announced its issue price would be $1.53, which is at the lower end of its $1.50 to $1.65 target price range. The stock is set to list on July 29.

Mr Willis said the company also seemed to have good growth prospects, particularly for its radio businesses.

"I think that, combined with the pricing, will result in probably a very good debut, assuming the market holds firm until then."

Mike Pero Mortgages was up 8c, or 9.3 per cent, to 94c. Late this afternoon the company said it expected to exceed the quarterly net profit of $338,028 it forecast in its prospectus, by about 20 per cent. The company will release its financial results for the four months ended June 30 in mid August.

Total market turnover for the day was worth $72.3 million.

Other stocks on the move today included: The Warehouse down 4c at 406, Fisher & Paykel Appliances up 6c at 450, Fletcher Building up 3c at 485, TrustPower up 10c at 485, Hallenstein Glasson up 5c at 320, Lion Nathan down 3c at 750 and Tower up 4c at 178.

- NZPA