NZ Stocks: Markets remain flat despite heavy news flow

1.00pm

The New Zealand sharemarket's leading indices ticked in opposite directions in flat morning trade which was somewhat at odds with the substantial corporate news flow.

B y midday the NZSX-50 gross index was 1.90 points or 0.8 per cent higher at 2436.15, while the NZSX-40 capital index eased by 1.14 points or 0.05 per cent to 2243.36.

Turnover by 11.30am was $16.86 million with 30 rises and 31 falls on 105 stocks traded.

AMRO Craigs Equities' Matt Willis said it was "a reasonably active morning from a corporate news angle".

He said the big news was the issue of 78 million new Air New Zealand shares to Rupert Murdoch's News Corp, equal to 2.6 per cent of the national carrier.

"The market has received this reasonably positively although there's no mention of price at this stage so the dilutionary effect is unknown," Mr Willis said.

"News Corp's investment track record is reasonably sound so you could view that as an endorsement."

Meanwhile, market leader Telecom provided some early impetus to the market, but by noon was just a cent higher at 564, providing $6.39 million of the total turnover.

Among other top stocks, Carter Holt Harvey was a cent lower at 187, Contact Energy was a cent higher at 514, and Fletcher Building was 4c higher 413.

Fletcher Forests shares were unaffected by news of legal action by Carter Holt Harvey and Norske Skog to protect their supply of wood from the company's forests.

Chairman Sir Dryden Spring downplayed the importance of the court proceedings at a special meeting this morning to vote on the proposed sale of the company's assets. Shareholders were convinced -- later voting to approve the $560 million sale. The company's shares remained at 133 by noon.

The biggest mover early on was chemicals manufacturer Nuplex which raced up 20c to 440, after announcing a $15.49 million first half profit, a 64 per cent increase on the same period a year earlier. The company said the result was driven by its Australian operations and its full year result looked likely to top last year's by more than 30 per cent.

Stock market operator NZX was down 20c to 725 "It's come off its highs", Mr Willis said.

"It's had an incredible run this week so I think they've run into a bit of profit taking there."

CDL Hotels which yesterday posted a flat $17.03 million full year profit was 2c lower at 42.

Ports of Auckland was up 10c to 730 after yesterday saying January container volumes were up 12 per cent on last year.

Turners Auctions continued to recover from a mauling it received after its recent results announcement, rising 10c to 425.

Stocks to move by 11.30am included: BayCorp Advantage down 2c to 313, Ebos up 2c to 365, Fisher & Paykel Healthcare down 10c to 1220, Hellaby Holdings up 6c to 475, Kirkcaldies down 6c to 310, Sky City up 3c to 453 and TrustPower down 5c to 690.

- NZPA