NZ stocks: Investors pocket profits after rally

The sharemarket fell 1.5 per cent yesterday, led down by currency gyrations and a spot of profit-taking.

The benchmark NZSE-40 closed down 31.38 points at 2067.68 as the New Zealand dollar see-sawed between 41.5USc and 42USc.

Fletcher Energy attracted a lot of interest in its last week of trading on the local bourse. With the cash component of its sale to Shell tied to movements in the local currency, Energy dominated the top-10 index, making up $105 million of the day's total turnover of $184 million. Energy shares closed down 18c at $9.42.

Trade in Telecom was also heavy, with the stock closing down 25c at $6.03 on turnover worth $42 million, ending its run up of late .

ABN Amro's Nigel Scott said profit takers were the main culprits driving the stock down.

"Telecom did spike up like the Warehouse last week .

"I think that is probably what you call a little bit of profit taking today," he said.

Telecom's decline matched a slump in overseas telcos late last week.

The Warehouse also closed lower, down 20c at $5.95.

Yesterday's fall in the local bourse did not mean it was set to follow overseas markets further south, however.

"Even with the market down 30 [points] I would still call that a relative consolidation considering we did run very strong through last week when other markets were weak," Mr Scott said.

In the US on Friday, stocks capped a dismal week on Wall Street with a big slide that sent major gauges to their lowest levels in more than two years, as an unexpected rise in consumer sentiment dampened hopes of a deep interest rate cut to boost the cooling US economy.

The week's slump on Wall Street destroyed some $US900 billion of investor wealth, and now has wiped out a whopping $US4.8 trillion since March 24 last year, as measured by the closing high of the Wilshire 5000 index, which comprises most US stocks.

British shares dropped to a 27-month closing low on Friday with technology, media and telecom stocks in the firing line when investors were scared off by earnings worries.

Adding to the fall in the NZSE-40 index yesterday were a number of stocks going ex dividend. These included Air New Zealand (4c), Baycorp (9c), Ebos (6.5c) Frucor (4c), INL (4c), Michael Hill (6.5c) NZ Refining (200c) Restaurant Brands (5.5c), Sky City (28c) South Port (2.5c), Tourism Holdings (4c), Tranz Rail (8.5c), AMP (A24c), Wrightson (1c) and Waste Management (5c) .

In other movements, Sky City closed down 20c at $9.45, effectively up 8c allowing for its dividend. It said it would bid for the rest of cinema and real estate company Force Corp in a stand in the market today after winning regulatory approval.

Sky City, which last month announced its $39 million plan to buy Force, already has an agreement to buy 50.2 per cent of Force from majority shareholder Francis Securities.

Force Corp closed down 1c at 26c on heavy turnover.

Baycorp dropped 40c to $10.95, some 31c more than the dividend it shed.

Brierley Investments, which underwent a two-for-one consolidation last week under chief executive Greg Terry, was down 2c at 66c.

Fisher & Paykel closed down 15c at $8.40, GDC dropped 30c to $2.30, Genesis shed a further 20c to $3.80, and Westpac NZ was 35c down at $13.70.

AMP was down 33c to $23.67 and Advantage Group lost another 6c to $1.02.

Tranz Rail shed 14c to $4.06 after exiting its 8.5c dividend.

Met Lifecare slipped 6c to $1.01 after its disappointing result.

Fletcher Building and Carter Holt Harvey were two stocks attracting some interest on the buy side yesterday.

Fletcher Building closed up 3c at $2.13, while Carter Holt was up 5c at $1.90.

Fletcher Building is set to begin trading as a stand-alone company next Monday, March 26, after Fletcher Challenge last week received the High Court's blessing to complete a planned breakup of the group.

Fletcher Forests closed down 1c at 32c.

In all falls outnumbered rises by 80 to 28 among the 153 stocks traded.

- NZPA