NZ stocks: Lacklustre market awaits news from US

New Zealand shares were down yesterday in a featureless, lacklustre market.

Despite continuing hostilities in Afghanistan, there was little new to steer the market, Credit Suisse First Boston broker David Price said.

The reporting season was due to start in the US and that would give the lead.

"The outlook for most companies there will be grim and sentiment will be tempered," he said. Consumer confidence was likely to be knocked as the huge number of layoffs began to bite and that would affect growth prospects.

Fears of retaliation from the American attacks on Afghanistan were suppressing markets, including New Zealand's, DF Mainland broker Greg Arnott said.

"I think the markets are braced for some kind of retaliation ... investors are going to ground.

"Sure, there will be days when the Dow's up 100 points and we'll react to it and pop up 15, but on a generalised level, I'm seeing suppressed markets, sideways trends - it's a wait and see attitude being adopted here."

The NZSE-40 index closed down 6.87 points at 1867.78, and turnover was worth only $38.3 million. The top 10 index fell 5.94 points to 805.73, and the small stocks index gained 0.21 to 5194.32.

Air New Zealand remained a market focus and retail investors continued to soak up selling sparked by the departure of chief executive Gary Toomey. Most of the professional market is bearish on Air NZ, but small holders continue to buy. The A shares held steady at 30c and the B shares fell 1c to 29c.

Auckland Airport lost another 2c to $3.33 but Air NZ's major shareholder, Brierley Investments gained 2c to 34c.

Telecom closed down 1c at $4.36 on turnover of 1.9 million shares worth $8.1 million.

There was continued strong interest in Fletcher Building which gained 1c to 272.

Sky City gained 16c to $11.18 but Sky TV lost 10c to $3.05.

Sky TV's majority owner, INL, also fell, slipping 13c to $3.10.

Stocks which posted good gains included Westpac NZ, up 40c to $15.50, Vending Technologies, 9c to $2.40, Fisher & Paykel, 4c to $13.50, DB Group, 5c to $5.15, Ports of Auckland, 10c to $5.50 and Frucor, 4c to $1.65.

Losers included AMP, down 37c to $21.53, Horizon, 60c to $12.40, Lion Nathan, 9c to $5.55, Carter Holt Harvey, 2c to $1.46, and Steel & Tube, 8c to $1.92.

- NZPA