NZ stocks: Baycorp rebounds but Telecom drags market lower

Credit services firm Baycorp Advantage Ltd stole the show on the New Zealand sharemarket today, rebounding over 10 per cent after naming a new chairman.

The stock closed up 22 cents at $2.04 on news Glenn Barnes, a recently retired executive of National Australia Bank, will replace Rosanne Meo at the helm.

Baycorp Advantage, created through the merger of New Zealand's Baycorp Holdings and Australia's Data Advantage a year ago, shed 50 per cent of its value on Tuesday after the company warned it expected to show little earnings growth in the year to June.

"One could probably argue that the company was oversold," Forsyth Barr Frater Williams broker Suzanne Kinnaird said.

"Having somebody that will lead the company forward and not repeat the problems of the past is certainly a good sign."

Weakness in lead stock Telecom prevented the wider index from closing in positive territory, however.

The benchmark NZSE-40 capital index ended down 6.83 points at 1955.27 on turnover worth $71 million - over half of that in Telecom .

Telecom dropped 7c to 483, due mainly to a fall in overseas telecos overnight. British heavyweight Cable & Wireless lost a third of its value after announcing a disappointing result and retrenchment plans.

Port of Tauranga continued to perform strongly following its share split this week. It zoomed ahead another 11c to a readjusted record high of 430 on heavy turnover worth $4.5 million.

Fletcher Forests added a cent to 23c and the preference shares rose 1c to 22 after the company yesterday said it was changing strategy, dropping its forest-owning ambitions and concentrating on "front end" business.

Fletcher Building fell back 6c to 325 after closing on a new high yesterday of 331, up 15c. On Tuesday, the company forecast an 80 per cent rise in core earnings to around $140 million in the first half, excluding its Laminex purchase.

Carpet maker Cavalier Corp soared 64c to a record 709 following an announcement yesterday that it was forecasting a $9 million half year net profit and was aiming for inclusion in the top 40 index.

The company also revealed plans for a two-for-one share split early next month.

Auckland Airport fell back a cent to 528, having risen 14c in the last two days after the Auckland City Council confirmed it was looking at an institutional book-build for part of the sale of its 25.6 per cent stake in the airport company.

Funds management company AMP Ltd was up 15c at 1365 after saying today it will significantly restructure its AMP Banking operation following a review of activities and costs.

AMP will exit manufacturing of banking products in New Zealand and the United Kingdom and will exit manufacturing of credit card products in Australia and New Zealand.

As well, it will exit the property finance business in Australia and New Zealand and offer products on a targeted basis in alliances with external manufacturers in the UK and New Zealand.

Other moves of note included: Fisher & Paykel Appliances, down 20c to 1075; Carter Holt Harvey, up 2c to 166; Contact Energy, down 2c to 375; and Lion Nathan, down 9c to 590.

Rises narrowly outnumbered falls by 42 to 41 among the 129 stocks traded.

- NZPA