NZ Stocks: Sharemarket improves during morning trading

12.00 pm

Following on from Monday's lower close, the New Zealand sharemarket opened weaker today, after poor showings on world markets overnight.

All the major ones - except Sydney and Hong Kong - closed with losses.

"Our market was quiet again at the opening," Geoff Brown, at J P Morgan Chase said.

"In terms of price movements there's not a lot but there's weakness in Telecom - which is a major part of the index's change - and provided a fair chunk of the volume that's been reported," he said.

The market improved slightly as trading progressed and at 11am the NZSE-40 index stood at 2029.61 - down 1.17 points - or 0.06 per cent from last night's close but up from an opening 2024.06.

The NZSE-SCI capital index was 4.10 points - or 0.07 per cent - lower, at 5505.40, against an opening 5502.59.

Turnover at 11am was 8.84 million shares worth $14.64 million and of the 108 shares traded 25 rose but 30 fell.

Market heavyweight Telecom - which has a 22 per cent weighting in the Top 40 index - opened at 495 - its lowest since February 22, also hit on January 12. It suffered five-year lows yesterday.

At 11am, however, it was a couple of cents higher at 509 and topping turnover - by value - with 893,538 shares worth $4.50 million.

Telstra was 11c weaker at 641 on turnover of 164,596 shares, worth $1.08 million.

Fletcher Forests topped turnover by volume with 1.03 million shares and it was steady at 30 but Fletcher Building rose 3c to 262.

Auckland International Airport lost 7c to 347.

Lion Nathan rose 3c to 555 on turnover of 215,684 shares, worth $1.19 million and Montana Group lost 5c to 452.

Regulators today struck a second blow in as many days against Lion Nathan's attempt to regain majority control of New Zealand's premier winemaker.

The Government's new takeovers' regulator has ruled that Lion's two-tiered offer for Montana at $5.50 a share for 11 percent and $3.70 a share for the rest of the company breached the new Takeovers Code.

Fletcher spin-off, forestry and bio-technology firm, Rubicon, which listed on the exchange in March was unchanged at a record 76, before its $60 million share buy-back.

Contact Energy lost a cent to 316 but on light turnover and Trustpower was steady at 326.

Tranz Rail was 5c higher at 407, compared with a 2001 high of 428 in March and a low of 350 in June.

Casino operator, Sky City rose a cent to 1175, Natural Gas Corp was a couple of cents higher at 91 and WestpacTrust was steady at 1562.

Air NZ's domestic A shares were unchanged at 107, as were the freely held B shares at 140, as investors await the outcome of the airline's petition to the Government to enable Singapore Airlines to increase its stake above 25 per cent.

Fisher and Paykel was 20c lower at 1280 and Brierley Investments rose a cent to 67.

Meat exporter Richmond was steady at 250, pay TV operator Sky TV was unchanged at 325 and part owner Independent Newspapers lost 5c to 380.

Wood-products firm, Carter Holt Harvey, rose a cent to 172 before it reports its first-quarter earnings later today, expected to reveal a tough period for the country's largest forest owner.

The Warehouse was steady at 540, Waste Management lost a cent to 337, drinks company, Frucor, shed 4c to 163, financial-services company, Tower, was 3c higher at 515, AMP was unchanged at 2550 and Baycorp lost 10c to 1260.

- NZPA