NZ stocks: Property sector play features in early trade

12.00pm

The sharemarket largely traded sideways this morning with a successful stand in the market by Kiwi Income Property Trust for a cornerstone stake in Capital Properties featuring.

Shortly before midday, the benchmark NZSX-50 gross index was 5.30 points higher at 2918.97 while the NZSX all capital index was 2.20 points higher at 966.20.

Capital Properties was up 8c to 110 having quickly risen 13c to 115 on opening to match the price Kiwi Income Property Trust offered in order to snare a 19.9 per cent stake.

Amro Craigs Equities retail adviser Bryon Burke said the offer was obviously at a premium to Capital Properties' market price. "It's certainly taken centre stage today," he said.

The overnight offer and stand in the market potentially worth up to $54.73 million quickly succeeded.

Kiwi Income Property Trust shares were down a cent at 109.

Turnover in Capital Properties made up $53.39 million of the market's total of $77.42 million by 11.30am.

Elsewhere, Mr Burke said the market was generally flat with a lot of movements among stocks taking place on low turnover.

"There's maybe been a little bit more buying as the morning's progressed."

Market leader Telecom was up 2c to 598, while across other top stocks Carter Holt Harvey was up a cent to 217, Contact Energy was up 4c to 627 and Fletcher Building rose 2c to 594.

Resthome operator Ryman Healthcare rose 7c to 330 after announcing a record first half profit of $11.1m.

NGC Holdings was unchanged at 314 after Auckland based lines company Vector announced it would buy AGL's 66 per cent stake in the gas lines company directly and would now also make a full takeover offer.

Mr Burke noted that Tower had continued to drift lower following its full year result earlier this week.

"Their bull run for the last little while has come to an end well and truly."

Other stocks to move in morning trade included: BayCorp Advantage down 5c to 340, Fisher & Paykel Appliances up 3c to 425, NZOG up 8c to 116, Pyne Gould Corporation up 10c to 355, Repco down 6c to 335.

There were 46 rises and 33 falls among the 131 stocks traded by late morning.

- NZPA