NZ stocks: Air NZ dominates quiet market

12.00pm

Air New Zealand shares were the most actively traded stock on a subdued day on the New Zealand market today.

"I think people are just pausing for breath on the Air NZ situation and that's about all," said Malcolm Davie, an analyst with First New Zealand Capital.

"We're heading into Thanksgiving in the States on Thursday so I think there's not a lot of offshore flow."

At 11.39am the benchmark NZSE-40 capital index was down 7.22 points to 1950.12, down 0.37 per cent.

Turnover was a light 6.5 million shares worth $10.7 million, dominated by 1.4 million Air NZ shares.

The airline's stock slipped 3c or 5 per cent to 53, reflecting some profit-taking after the carrier announced the sale of a 22.5 per cent shareholding to Qantas. That news sent the share price up 6c yesterday.

Total turnover was topped by Telstra on $1.3 million worth of shares. The Australian telco edged up 1c to 500 after sinking to a near five-year low yesterday as fears emerged that the Australian government might delay the final tranche of its privatisation.

The usual market leader Telecom was off 1c to 470 on light turnover.

Tranz Rail -- which tumbled to a new low yesterday as it kicked off its rights issue -- was steady at 95. The head shares, which were adjusted to about 104, closed down 9.2c yesterday. The rights closed at 20c.

Mr Davie believed Tranz Rail had been treated "pretty punitively" for the $66 million rights issue, which is aimed at easing debt and providing extra security to the Aratere interisland ferry leaseholders.

"Certainly I think last week's announcements were pivotal for the long-term survival and profitability of the business."

Trading was fairly sparse but of the other moves, Auckland Airport fell 5c to 530, newly christened investment vehicle Dairy Brands was up 5c to 64, Ports of Auckland rose 10c to 630 and Sky City was up 5c to 770 .

Meat processor Richmond was up 5c to 250, after yesterday's stellar rise of 55c, reflecting its court case success against South Island rival PPCS on Friday.

So far there have been 33 rises and 31 falls on 107 stocks traded.

On Wall St, stocks got an early boost from better than expected housing data which showed sales of existing US houses rose 6.1 per cent in October.

But investors are still nervous about Iraq and upcoming data later this week.

The Dow Jones industrial average closed up 45 points, or 0.5 per cent, at 8849 in a choppy session. The blue-chip Dow has gained more than 21 per cent since touching a five-year low on October 9.

The broader Standard & Poor's 500 Index was up 2 points, or 0.25 per cent, at 933, and the technology-laced Nasdaq Composite Index was up 13 points, or 0.9 per cent, at 1482.

Data expected later this week include readings on the growth of the economy, consumer spending, consumer confidence, durable goods and weekly jobless claims.

- NZPA