NZ stocks: Auckland airport stake boosts dull day

12:00 pm

The New Zealand sharemarket was exceptionally quiet this morning, despite the $109 million worth of Auckland Airport shares traded.

Overnight, ABN Amro moved Singapore's Changi Airport's 7.1 per cent stake in Auckland Airport, mainly to offshore institutional investors, at 358 per share.

The sale comes on the eve of a meeting by Auckland City Council to discuss selling its 26 per cent interest in the airport.

By mid-morning Auckland Airport shares were down 10c at 370, against an all-time high of 395 reached last week.

Changi Airport Enterprises said in a statement to the stock exchange that the Auckland Airport shareholder no longer fitted within its investment strategy, which was now focused on other international markets.

Stephen Wright of ASB Securities said the Auckland Airport turnover made up more than 90 per cent of the total turnover, which by mid-morning was 43.48 million stocks, valued at $132.82 million.

Auckland Airport's $109.18 million turnover was followed by Telecom, with $7.49 million.

The NZSE-40 capital index was down 27.52 points, or 1.35 per cent, at 2018.21.

"An exceptionally quiet day, ($20) million of other business, which is nothing," Mr Wright said.

Market heavyweight Telecom was down 18c at 480, after falling in the offshore session.

"Telecom was certainly weaker in the US overnight. We took it below its previous US finish, which was 518 equivalent on Friday night, then last night it was down in the 490s (498), and we've taken it even lower again.

"There's some offshore selling, we've seen that in Fletcher Forests as well," he said.

Fletcher Forest shares were down 1c at 23.

Interest has fallen off in Briscoe Group, which started trading on Friday at 100 and was down 1c at 142 today, after a high since listing of 148. The company owns retail chains Rebel Sport and Briscoes Homeware.

Troubled cinema and property company Force Corporation regained a touch, up 0.2c at 4 after falling to a new low of 3.8 yesterday. Majority owner casino company Sky City was down 15c at 615.

Elsewhere on the market, Carter Holt Harvey lost 3c to 167, Contact Energy shed 2c to 398, Fisher & Paykel Healthcare was down 3c at 1707 while its appliances division was unchanged at 1035, and discount retailer The Warehouse shrugged off 5c to 645.

Among the smaller stocks, Sanford lost 10c to 610, Wellington Drive Technologies was down 3c at 47, beverage company Frucor lost 13c to 220 and Rubicon was down 1c at 59.

On the up side, Telstra was up 4c at 650, Restaurant Brands was up 4c at 189, Nuplex gained 1c to 316, Wrightson was up 2c at 119, Waste Management was up 3c at 280 and AMP rose 13c to 2265.

Leather exporter Richina Pacific lost 8c to 59 after warning shareholders yesterday that the second half-year result would be well down on expectations. Key problems were that the international price of leather, one of Richina Pacific's key investment areas, had fallen, and international shoe and garment companies had decided to either delay or cancel orders.

There were 41 falls and 23 rises on the 111 stocks traded.

On Wall Street, the Dow Jones industrial average closed up 80.82 points, or 0.82 per cent, at 9891.97; the broader Standard & Poor's 500 Index rose 11.27 points, or 1 per cent, to 1134.36; and the technology-laced Nasdaq Composite Index gained 34.53 points, or 1.76 per cent, to 1987.45.

- NZPA