A small rally in Air New Zealand was the main feature of a weak sharemarket yesterday.
The NZSE-40 capital index ended down 2.72 points at 2106.35 , while smaller stocks firmed a touch, the NZSE-SCI capital index gaining 6.51 points to 5120.62.
Market major Telecom accounted for $20.75 million of total turnover
worth $74.91 million, and Carter Holt accounted for $16 million.
Rising stocks just outnumbered falls 55 to 40 among the 138 stocks traded.
Air NZ's domestic A shares finished up 4c at $1.12 and the Bs, which foreigners can own, rose 6c to $1.58 after Qantas on Tuesday announced an alliance with cut-price airline Impulse.
"There is consolidation starting to appear in the Australian market, which has got to be good news," Salomon Smith Barney's Craig Robins said.
"At the end of the day consolidation and a return to more normal fare structures should be better news for both Qantas and Air NZ."
Air NZ's Ansett Australia said yesterday it would also be interested in pursuing talks with discount carrier Impulse Airlines on a possible deal. However, that was taken as little more than posturing.
Elsewhere, Contact dropped 7c to $2.97. Mr Robins suggested that possibly since American cornerstone shareholder Edison Mission said it would increase its stake by 8 per cent people could "rush for the door", selling into any strength.
Telecom saw some profit taking after holding up round $6.50 in recent days. It ended down 8c at $6.40. Australian counterpart Telstra was up 12c at $8.25.
Carpet manufacturer Cavalier Corp confirmed market rumours that a sizeable cash payout was on the cards, announcing a $25 million return of capital to shareholders.
Analysts' reports have been circulating in the market since the middle of last week that the company was due to release the cash, causing Cavalier's share price to rally from $4.79 on April 24 to $5.20 on Tuesday.
The company's shares closed down 5c at $5.15 yesterday, just prior to its announcement to the Stock Exchange.
Cavalier said that subject to High Court approval it will cancel one in eight shares and return $5.60 per cancelled share to holders.
RMG, in which Eric Watson is a major shareholder, jumped 4.5c to 24c on strong turnover of 1.4 million shares.
Among other leaders, Brierley Investments eased a cent to 58c, Auckland Airport firmed 1c to $3.47 and Carter Holt added 2c to $1.84.
Lion Nathan rose 3c to $5.08, Tranz Rail fell 10c to $3.75 and The Warehouse gained 3c to $5.69.
- NZPA
A small rally in Air New Zealand was the main feature of a weak sharemarket yesterday.
The NZSE-40 capital index ended down 2.72 points at 2106.35 , while smaller stocks firmed a touch, the NZSE-SCI capital index gaining 6.51 points to 5120.62.
Market major Telecom accounted for $20.75 million of total turnover
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