NZ stocks: Shares drift as market awaits Contact news

12.00pm

The New Zealand sharemarket drifted sideways on light turnover his morning as investors continued to keep their hands in their pockets ahead of news about the sale of a key Contact Energy stake.

By 11.30am the NZSX-50 gross index was 0.53 of a point lower at 2690.48, while the NZSX all capital index was 0.54 of a point higher at 904.42. Turnover was a modest $19.97 million with 27 rises and 20 falls among 106 stocks traded.

Hamilton, Hindin, Greene dealer Grant Williamson said trading had been very quiet. "Once again the market continues to wait for something in the power sector, mainly Contact Energy."

Contact, the market's third largest stock by market cap had drifted off 3c by 11.30am to 585. There had been some expectation that 50.1 per cent owner Edison Mission would make an announcement on Friday night about a sale of its overseas assets including Contact. An announcement on the sale will likely trigger a re-shuffle of ownership in New Zealand's energy sector. However, this morning, the market remained none the wiser about the sale.

Elsewhere, market leader Telecom was a cent higher at 587 but among other top stocks there were few movers.

Mr Williamson said financial services group Tower continued to recover from the troubles it has suffered in the past couple of years.

The stock was up 3c to 177 by 11.30am. "That's looking quite good and the stock's trading quite well in Australia as well."

The Warehouse was down a cent at 409. The New Zealand Herald this morning reported the company could be up to $200 million out of pocket if it decided to pull the pin on its persistently troublesome Australian operations.

Other stocks to trade by 11.30am included: Fletcher Building down 2c to 480, Nuplex up 2c to 539, Taylor up 19c to 270, and TrustPower up 5c to 480.

- NZPA