NZ stocks: Offshore markets underpin positive trading

12.40am

The New Zealand sharemarket spiked higher this morning, having taken a lead from the overnight gains posted by offshore markets, a broker said.

At 11.30am, the benchmark NZSX-50 was up 14.82 points at 2770.76 and testing fresh highs.

The NZSX-All capital index was up 4.68 points at 932.32.

Shares in market heavyweight Telecom were up 5c at 613. Its $15.2 million turnover represented about 50 per cent of the $33.0 million on NZX.

Among the 115 stocks traded so far this morning were 54 rises and 13 falls.

Hamilton Hindin Greene broker Grant Williamson said the New Zealand sharemarket had taken its lead from those offshore.

"It's been a very buoyant opening with the majority of our leading stocks coming in for some quite strong buying," Mr Williamson told NZPA today.

"What's probably inflated the rise is a lack of selling in the marketplace.

"Not a lot of volume, with the exception of Telecom, has gone through the market today but there's been some good rises."

This morning, sharemarket operator New Zealand Exchange (NZX) posted a June half net profit after tax of $2.03m, up on the $0.58m reported for the same period last year.

NZX's earnings per share for the period were 16.59c, and its total revenue was $8.294m, up 52.4 per cent from the previous same period.

NZX shares were unchanged on 865c.

"I think the NZX result was in line with what everyone was expecting. It's been a very good six months for them with quite a few new listings for them," Mr Williamson said.

"They're on track to continue that improvement in underlying earnings."

Also today, Contact said it would introduce a long term incentive scheme "to more closely align the remuneration of senior executives with the performance of the company".

Chairman Phil Pryke said it was "best management practice".

Contact shares were up 6c at 601.

Listed biotechnology company Genesis Research was also in the news after saying it would lay off 29 staff at its subsidiary unit AgriGenesis BioSciences.

The lay-offs were a move to cut costs, the company said. Genesis shares were unchanged at 75c.

Other stocks on the move included: AMP up 4c at 695, Baycorp Advantage up 3c at 315, Cabletalk up 4c at 39, Fletcher Building up 2c at 497, Hallenstein Glassons down 3c at 340, Mainfreight up 6c at 200, Promina up 5c at 435, Pumpkin Patch up 5c at 174, and The Warehouse up 1c at 446.

Shares in Mooring Systems were up 15c at 369. The company holds its annual meeting today.

- NZPA