NZ stocks: Traders get set to lift the pace

By SIMON HENDERY

As Christmas fades to a distant memory and more money movers return to work today, sharemarket activity should pick up this week.

But it will be a case of easing into the week Wellington's Anniversary Day holiday today will dampen turnover, and the local market is likely to remain directionless until Wednesday.

That is because US markets will also be closed tomorrow (Monday, US time) for the Martin Luther King Day holiday.

New Zealand's second largest listed company, Carter Holt Harvey, reports its third quarter result tomorrow.

According to a Dow Jones survey of analysts the company will deliver a third-quarter net profit before abnormals of $16 million, compared with a net profit of $42 million for the same quarter in 2000.

It posted a loss of $19 million in the six months to September 30.

Bendon Group directors are today due to respond to Pacific Retail Group's $1.90 raid on the lingerie manufacturer.

There are at least three bidders or potential bidders showing an interest in Bendon.

Macquarie Equities senior investment analyst Arthur Lim said there had been "a surprisingly robust start to the year" with corporate activity so far in Frucor, Bendon and Contact Energy.

"Hopefully that is indicative of things to come."

The Reserve Bank will carry out its regular review of the official cash rate on Wednesday morning.

But Governor Dr Don Brash's regular outing is not expected to cause any ripples on the market, with analysts firmly of the view that the rate will remain unchanged at 4.75 per cent given that forecasts for the world and United States economies have picked up over the past month.

Most economists are picking Dr Brash will not consider raising rates until July or August.