NZ stocks: Shares flicker to life after slow start

12.40pm

The New Zealand sharemarket flickered into life in mid morning trade today after a slow start.

By midday, the NZSX-50 gross index was 11.63 points higher at 2690.58, while the NZSX all capital index was 2.86 points higher at 903.27.

Turnover by late morning was $36.03 million and there were 34 rises and 30 falls among the 121 stocks traded.

Amro Craigs Equities retail adviser Bryon Burke said the market had opened on a quiet note ahead of Consumers Price Index (CPI) inflation data released this morning. He said the CPI figure -- being broadly in line with expectations didn't have any surprise effects on the market.

Top stock Telecom was 2c higher at 585, but accounting for a much of the main index's gain was number two stock Carter Holt Harvey which was up 5c to 212.

Mr Burke said Carter Holt's rise was related to increased market chatter ahead of the company's announced capital return to shareholders following the sale of its tissue business.

" Also the company is still going down the track of forest sales. So from an asset play point of view they're starting to look like good value and I think everyone is jumping on the bandwagon at the same time."

The market's other highlight this morning was recently relisted carpet maker Feltex's 4c move to 472, it's highest level since listing at 464 last month and a 2c premium to its issue price of 470.

The rise was on substantial volume and the company had turned over $13 million worth of shares early on in the session.

Mr Burke said it looked like an overhang in the stock held by the organising broker following Feltex's initial public offer had now been placed.

"Without that overhang out there the price has sort of jumped up. So everyone will be happy that they are at a premium to listing price."

Elsewhere Contact Energy, currently the centre of attention as the market awaits news of the sale of Edison Mission's controlling stake in the company, was up 9c to 590.

Michael Hill was up 9c to 615 its highest level since January last year.

New listing Dominion Finance was down 3c to 102.

Elsewhere Fletcher Building was down 3c to 467, Independent Newspapers was down 2c to 465, NZX was down 6c to 815, Toll NZ was up 5c to 192, and The Warehouse was up a cent to 405.

- NZPA