NZ Stocks: Sharemarket improves during morning trading

12.15 pm

New Zealand shares opened firmer today after world sharemarkets closed generally higher overnight.

Activity was quiet at the opening of the holiday-shortened week, and the trend appeared to follow muted European trading, with several markets there also closed for long-weekend breaks.

However the market had a reasonable feel to it as trading progressed and should keep its head above water for the rest of the day, Peter Stokes, senior investment adviser at J B Were, said.

At 11am, the NZSE-40 index stood at 2042.96 - 20.14 points - or 1.00 per cent - higher and up from an opening 2030.00.

The NZSE-SCI capital index was 5.10 points - or 0.10 per cent - firmer at 5339.52 but down from an opening 5344.05.

Turnover at 11am was 11.62 million shares, worth $29.88 million and of the 111 shares traded, 53 rose and 20 fell.

Market heavyweight Telecom was topping turnover with 3.49 million shares, worth $18.93 million and was 14c higher at 560, which tended to suggest it might have been over-sold last week, Mr Stokes said.

Fisher and Paykel rose 26c to 980 ahead of its full-year results tomorrow. Mr Stokes said the market expected to hear more of the company's plans to split its business.

Rural services company Wrightson was 4c higher at 71.

Today it revealed evidence of the rural upturn when it reported its nine-month ebit (earnings before interest and tax) had more than doubled to $19.4 million, against $9.5 million in the nine months to March 31, 2000.

Wrightson chairman John Palmer said the significant improvement in earnings reflected a strong performance across the group's New Zealand businesses.

Infratil, which went ex-dividend 5.25c today, fell 6c to 142.

New Zealand's largest listed meat company, Richmond, shed 25c to 290 but on volume of only 54,453 shares.

INL was 5c higher at 370 and Sky TV was steady at 331.

Air NZ's freely-held B shares were 4c higher at 148 and the domestic A shares gained 3c to 105.

Fletcher spin-off Rubicon was steady at 57, Fletcher Building rose 3c to 234 and Forests gained a cent to 31.

The Warehouse rose 5c to 575, Contact Energy lost a cent to 277, Trans Tasman Properties was steady at 23 and Waste Management gained 6c to 390.

Among other moves, Advantage Group rose a couple of cents to 77, drinks company Frucor was a cent lighter at 163, casino operator Sky City gained 5c to 985, financial services company Tower was steady at 550 and AMP dropped a 25c to 2480.

-- NZPA