NZ stocks: Leaders tug market in opposite directions

6.00pm

Sharemarket leaders today tugged the top 50 index in opposite directions with those pulling down just holding sway.

The benchmark NZSX-50 gross index closed 5.04 points down at 2687.60, having been up by a similar margin at midday. The small stocks index fared worse, dropping 14.58 points to 7241.95 while the top 10 index eased just 1.13 points to 1097.36. The NZSX all capital index rose 0.71 to 903.25.

Star performer was Fletcher Building, which surged 2.4 per cent, 11c, to 469 - its highest level in nearly seven years. There were rumours of an imminent acquisition but the company would not confirm.

Market leader Telecom was also also a supporting influence with a 4c gain to 587 - just three cents off a 16 month high. Turnover was solid at $43 million as was the market's due to the long weekend in the United States.

On the other side of the ledger, Contact Energy fell 17c to 578. It gave up some of its recent gains on nervousness about how the bidding will go for control. There is speculation bids close tomorrow for Edison Mission's 51 per cent stake, which might spark a full takeover.

The Warehouse slumped 6c to 411 - its lowest point in over four years. Goldman Sachs JBWere broker Murray Rutherford said the company's recent briefing on cashflows had failed to allay analysts concerns.

"It showed what everyone knew - that Australia is quite demanding of capital. Clearly the market is not even giving them the benefit of the value of the New Zealand operation, which is far in excess of where the current share price is."

Last week, The Warehouse restated that its full year earnings would be at the lower end of a downwardly revised forecast.

There were quite chunky moves for a number of the other leaders, mostly on light volume, and according to Mr Rutherford, not for any apparent strong reason.

On the positive side Baycorp Advantage rose 10c to 330, close to a two-year high. Others to prosper were: Ryman Healthcare, 7c to 288, Hellaby, 6c to 505, Waste Management, 5c to 485, Fisher & Paykel Appliances, 6c to 460, Sky TV, 6c to 525, Trustpower, 4c to 460 and Hallenstein Glasson, 4c to 303.

On the other side, Lion Nathan fell 8c to 752, AMP 7c to 680, Auckland Airport, 6c to 675, Infratil, 6c to 300, ANZ Bank, 15c to 2000, Ports of Auckland, 5c to 705 and Sanford 5c to 455.

Air NZ rose 1c to 42c as its appeal against the Commerce Commission's rejection of its proposed tie up with Qantas continues in the High Court at Auckland.

Genesis Research said today it has completed recruitment for the Phase II trial of childhood eczema therapeutic treatment AVAC. The company's stock was unchanged at 73c.

Richmond was also unchanged at 320, 9c above PPCS's bid price. Its independent directors today came out in grudging support of PPCS's offer to mop up minority shareholders.

Taylors Group fell 20c to 251 on light turnover.

Given the US market holiday, total market was reasonable at 35.9 million, worth $97.9 million. Stocks rising matched those to fall at 56 among the 159 stocks traded.

- NZPA