NZ stocks: AMP, Tranz Rail dominate weaker market

AMP shareholders saw their share price plummet on a mixed and weaker New Zealand sharemarket today.

The benchmark NZSE-40 capital index closed down 3.85 points to 1990.86 on modest turnover worth $51.7 million.

There was no direction from US equity markets, which were closed last night due to a public holiday.

"All and all, it's mostly losers on the day," noted ASB Securities broker Andrew Kelleher of today's local trading. "To be fair, we've had a quite good run right from mid to late December onwards, and we're just giving a few of those gains back."

"Whether or not it carries on, I suspect will be driven by what happens in the US over the rest of the week."

Offshore, the big news was AMP which at one stage slid to an all time low of 1101, but recovered somewhat to 1125, down 85c.

The company announced this morning that it expected a 2002 net loss after unusuals of around $A900 million ($NZ975.6 million). The stock has virtually halved in price, falling from a year high of $23.70c on troubles with its British unit, Pearl.

Mr Kelleher said the price seemed to signal an "element of frustration" with the company, even though investors had known there was a potential for revision in its profit outlook.

Locally the spotlight was on Tranz Rail, which steamed up 14c to 137 on a robust 3 million shares worth $4.1 million.

The stock has risen 25 per cent since Thursday's close, after media reports that the Government would pay a "reasonable" price for the railroad company's tracks, if re-nationalised.

Prime Minister Helen Clark said on national television today she knew of no offer at present "but the market doesn't seem to believe her," Mr Kelleher said.

Telecom topped turnover, clawing back 4c to 455 on $18.4 million worth of shares, after a 10c tumble yesterday on solid volume.

Australian counterpart Telstra also gained 4c to 500 after a similar loss yesterday which brokers put down to either profit taking or a technology stock selloff in the US.

Jewellery chain Michael Hill lost 10c to 630 seemingly inexplicably after reporting a 5.3 per cent increase in half yearly sales on the same period a year ago. Given the thin turnover, brokers put it down to a low bid.

Carter Holt slid 5c to 180, giving back some of its recent gains. Auckland Airport lost a cent to 533 after announcing a joint venture airport hotel project had been fallen through, but its would-be partner Sky City shot up 7c to 848.

However, a record week for international passenger arrivals at Auckland Airport, and a rise in November accommodation figures seemed to boost tourism operator THL, up 6c to 125.

Other on the upside included Richmond up 5c to 275, Cavalier up 10c to 390, Port of Tauranga up 10c to 460, Software of Excellence up 11c to 130, and Baycorp Advantage, up 5c to 239.

Those on the downside included the Warehouse down 10c to 725, and Fletcher Building down 8c to 330.

Falls outnumbered rises 45 to 41 on 131 stocks traded.

- NZPA