NZ stocks: Telecom leads market on positive drive

12.11pm

The New Zealand sharemarket probed positive territory in morning trading, with the market driven higher by bourse heavyweight Telecom, a broker said.

At 11.30am, the NZSX-50 was up 7.74 points at 2302.56, while the NZSX-40 capital index was up 6.99 points at 2203.04.

Shortly after the market opened today, there had been $33.4 million worth of shares sold on volume of 16.5 million. Among the 115 stocks traded so far were 37 rises and 24 falls.

Shares in market leader Telecom firmed 3c to 504, the telco trading $9.5 million worth on volume of 1.9 million.

ABN Amro Craigs operator Matt Willis said the market had followed Telecom's lead in trading this morning.

"I think it's probably fair to say that the net offshore selling (of Telecom shares) has perhaps dried up," he told NZPA today.

"Telecom is creeping its way back to a fairer level."

The market's second ranked company, Carter Holt Harvey, also featured in trading, its shares up 1c at 184. There had been $5.5 million worth of the wood processor's shares traded on volume of three million.

In other market news, shares in troubled insurer AMP were up 7c at 790 after it yesterday won Australian Federal Court approval to demerge its United Kingdom arm.

AMP yesterday predicted its Australian operations would lift net profit this fiscal year to the higher end of a A$362-A$495 million ($424-$580 million) after the split.

So far today there has been $3.4 million worth of AMP shares traded on volume of 427,696.

"I think the (AMP) demerger was expected and the profit forecasts are certainly encouraging," Mr Willis said.

"The New Zealand market is always a little bit hesitant before the Australian market opens and that's where the price will be set (for AMP shares) this afternoon."

Powerco shares were up 3c at 189 after it yesterday posted a 40 per cent improvement in half-year profit to $30.69 million.

Newly listed vodka maker 42 Below was down 2c at 32, well down on its initial public offer price of 50c.

"The market is an efficient machine and it'll price it (42 Below shares) where it's fair," Mr Willis said.

Shares in besieged rail operator Tranz Rail were up 2c at 120 as Australian logistics company Toll Holdings continues attempts to take it over.

Shares on the rise today included: Cavalier up 1c at 536, Contact Energy 5c at 500, Michael Hill International 4c at 430, Fletcher Building 7c at 436, and Sky City Leisure 3c at 120.

Among those on the slide were: Auckland International Airport down 2c at 637, Northport 3c at 315, Briscoe 1c at 189, Independent Newspapers Ltd 2c at 458, and Wrightson 2c at 148.

Overseas, the Dow Jones industrial average was down 40 points at 9762, the broad Standard & Poor's 500 Index was up 0.50 of a point at 1047, while the Nasdaq Composite Index was up 3 points at 1942.

- NZPA