NZ stocks: Forests trade lifts turnover

A surprise decision from Fletcher Forests to withdraw its bid for the vast central North Island forest estate boosted sharemarket volume before the Anzac Day holiday today.

Turnover of 54.37 million stocks, valued at $124.19 million, was topped by Fletcher Forests' 12.11 million stocks, followed by Telecom's 7.10 million. The NZSE-40 capital index fell 8.35 points, or 0.41 per cent, to 2044.32.

David Cleal of Macquarie Equities said the market was soft on reasonable volume.

"The volume is reasonably high but it's across the board."

The announcement from Fletcher Forests, down 1c at 23, was unexpected.

"It was a surprise to the market and there has been a bit of volume in Forests today as a consequence," Cleal said.

Rubicon, 17.6 per cent shareholder in Forests, was also down 6 per cent or 4c to 59c in response to the announcement.

"There's been a technical bounce in Baycorp Advantage, up 5 per cent [26c to $5.10]. It's been looking quite weak recently on competition fears ... it's the other stand-out mover on the day," Cleal said.

"Telecom was quite weak towards the close [down 5c to $4.81]. It's a sector which is pretty friendless at the moment wherever you are."

Fisher & Paykel's two offshoots have had a good run in the last few days after Appliances announced it would better analysts' forecasts. F&P Healthcare was up 10c at $9.50 while the Appliances division was up 18c at $9.48.

Briscoe Group, down 7c to $2.01, had softened recently amid speculation the company was searching for more assets.

"I think it's clearly profit-taking because it's had a pretty mighty run. The market's still waiting for an announcement on a third brand, and I think there's still interest in what that might be and where it will take the company," Cleal said.

Briscoe Group owns Briscoe Homeware and Rebel Sport.

Carter Holt Harvey was down 1c at $1.84 after its AGM was told the company was in a good position to benefit from an upswing in prices in future.

Elsewhere on the market, Auckland Airport rose 2c to $4.42, BIL International gained 2c to 51c, Fletcher Building was up 4c at $2.82, and Ports of Auckland rose 10c to $6.50.

ANZ Bank gained 21c to $22.91 on expectations of a healthy half-year result to be announced tomorrow.

- NZPA