Tower shareholders want to see the pace picked up

Listed insurer Tower has clawed its way back from its post-September 11 plunge, although that is unlikely to soothe shareholders who are wanting to see its shares don sprint shoes.

The company has its annual meeting in Wellington today and at last year's meeting there were more than a few grumbles about the languishing share price. Even a raft of rosy broker reports predicting the price would average well above $6 last year could not cheer shareholders.

The stock closed down 4c at $5.08 yesterday, well in arrears of the $5.65 it listed at in September 1999.

Tower's share price plunged to below $4.40 after the terror attacks last year and although it has rebounded it has not come back with the same grunt that big players AMP and AXA have shown.

AMP, the big daddy of the insurers, has put on between $2.80 and $3 since the attacks to close up 19c at $23.50 yesterday and has also risen in Australia, and AXA is now trading at $3.62.

Macquarie Equities retail investment director Arthur Lim said Tower shareholders would be looking for an improvement in the share price.

Other insurance stocks were rising as the future outlook improved for global economies and stockmarkets. However, it was more difficult for Tower to shine, given the size of the others, he said.

Tower's share price does spurt when it is linked to takeover talk, as it has been in the past couple of years with several institutions, but nothing has come from them.

Shareholders will also want to know more about what Wellington-based Tower will do with its Safe Trust, which holds stock for shareholders who can no longer be found. It is understood there are more than 100,000 people who did not get free or partly paid shares in 1999 when the company listed.

Tower's profit was $77 million for the September year, pushed up by a $17 million revaluation.

- NZPA