NZ stocks: Shares go sideways in quiet session

12.00pm

The New Zealand sharemarket quietly crabbed sideways during today's morning session with a number of ex-dividend stock moves and familiar stories from previous sessions providing the few features.

By 11.45am the benchmark NZSX-50 gross index was 1.15 points or 0.05 per cent lower at 2472.05, while the NZSX-40 capital index was 0.24 points or 0.11 per cent lower at 2261.14.

"It's just very quiet -- the market's barely changed," said Forsyth Barr Frater Williams broker Brian Stewart.

Market leader Telecom was a cent lower at 563 on turnover worth $8.75 million -- turnover across the whole market was worth $17.2 million with 26 rises and 29 falls among the 99 stocks traded.

Contact Energy was up 4c to 523. The company announced this morning it was forming an $80 million natural gas exploration fund with state-owned Mighty River Power Ltd.

Mr Stewart didn't believe the energy generator and retailer's rise was linked to the announcement. "I think it's more still speculation on AGL, " he said.

Contact has enjoyed a series of gains over recent sessions fuelled by rumours that AGL is interested in purchasing Edison Mission Energy's 51 per cent stake in Contact.

Discount retailer The Warehouse continued to recover from the selloff which accompanied its disappointing result two Fridays ago.

This morning the stock was up 4c to 443 on reasonable volume.

Among other second tier stocks, Carter Holt Harvey was up a cent to 203 and Fletcher Building was down a cent to 413.

As seen in previous sessions, trade remained brisk in Tower shares with 1.53 million, worth $2.36 million, changing hands. Their price remained unchanged at 150.

Again, Mr Stewart said it was speculation about a potential takeover of the company that was underpinning buying in the stock.

"It'll be a lot of squaring up given the speculation in that Promina may look at Tower."

However the biggest moves were seen in the stocks which went ex-dividend.

Cavalier Corp, which paid 8 cents per share, was down 5c to 500, Ports of Auckland -- 15 cps, was down 13c to 705, Port of Tauranga -- 7 cps, was down 9c to 440, Property for Industry -- 1.73 cps, was unchanged, and Steel and Tube Holdings -- 12 cps, was down 15c to 378.

Other movers among the top 50 included: Auckland International Airport down 4c to 658, BayCorp Advantage up 3c to 327, Fisher & Paykel Healthcare down 4c to 1170, Ryman Healthcare up 4c to 218, Sanford down 15c to 500, and Sky City down 4c to 446.

- NZPA