NZ sharemarket up as Contact Energy plans $2b spending

By NZPA

Friday 23rd February 2007

Contact Energy shares were up 2.5% when the New Zealand sharemarket opened today, after announcing a plan to spend $2 billion on new wind and geothermal power generation plants.

The 22c rise to $8.80 came after Contact , 51% owned by Origin Energy of Australia, reported a $122.9 million December half year net profit, down from $146.6m a year ago.

Children's clothing retailer Pumpkin Patch were up 9c to $4.48, but still down on the $4.65 the shares were worth on Tuesday before the company announced a 6.4% rise in its January half year net profit.

The 25c share fall that day perplexed some analysts, although some investors were thought to have had inflated expectations.

Air New Zealand, which today announced it would open a direct link from Auckland to Vancouver in November, was down 3c early to $2.09.

Port of Tauranga was down 5c to $6.20 amid growing uncertainty about a possible merger with Ports of Auckland.
Around 10.15am today the benchmark NZSX-50 index was up 11.08 points to 4100.86.

Ryman Healthcare was up 3c to $2.43, after Australian investment giant Babcock & Brown this week bought a 6% stake in the New Zealand retirement living and aged care company.

Shares in Turners Auctions rose 2c early to $1.57 after the company reported a 37% fall in net profit after tax to $3.17 million for the 2006 calendar year, but said it was more confident about 2007.

Among other changes early today Freightways was down 3c to $4.57, Sky TV was up 3c to $6.18, top stock Telecom rose 1c to $4.83, and Tourism Holdings slipped 2c to $2.02.

In the US, blue-chip stocks ended down as a jump in oil prices added to worries about inflation, while the Nasdaq ended at a six-year high following a rally in chip makers' stocks.

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