NZ stocks: Fletcher Energy runs out of steam

Fletcher Energy started the day with a hiss and a roar after oil prices soared and another surge in its 11-per-cent-owned Capstone Turbines, but ran out of steam in late trading.

It was up 18c to 890 in early business but closed on the New Zealand Stock Exchange at 878, just 6c higher than Monday, on turnover of 1.14 million shares worth $10.02 million.

"That's a little bit disappointing on the day, considering that Capstone and oil prices were both up," said the institutional sales vice-president of Merrill Lynch, Richard Leggat.

Fletcher Building was 1c higher at 238 but Forests came off 1c to 83.

The sharemarket weakened overall, with the NZSE-40 Capital Index down 3.18 points (0.15 per cent) to 2087.92, and the NZSE SCI Capital Index of smaller stocks falling 28.77 (0.53 per cent) to 5380.71.

Turnover totalled a light $69.8 million, with falls outnumbering rises 73 to 25. "The sharemarket was quiet, as it was on Monday, and the tone was quite soft," Mr Leggat said.

Market giant Telecom gained 10c to 655, leading the sharemarket by turnover, with 2.8 million shares valued at $18.2 million traded.

"Telecom clawed its way higher. There isn't any particular news - there was just a little bit more buying and not a lot of selling," Mr Leggat said.

Among the few other stocks to rise yesterday, Advantage and Waste Management both rallied 10c to 243 and 440 respectively, while The Warehouse was 1c higher at 596.

On the downside, Sky TV and 49 per cent owner INL both fell, despite Sky reaching a deal with TVNZ to broadcast Parliament's question time, which Mr Leggat said was positive for Sky.

INL closed 9c weaker at 390 while Sky came off 13c to 377.

Baycorp lost 9c to $13.30, Tower fell 5c to 515, Lion Nathan was 4c lower at 470 and Contact came off 3c to 255.

Auckland Airport softened 6c to 288.

- NZPA