NZ stocks: Market bobbles along near year lows

6.00pm

The sharemarket bobbled along just above year lows today in a market lacking motivation to move higher despite a strong showing by Wall St.

JB Were broker Peter Stokes said the market was crabbing sideways with order flows the main determinant of direction.

The benchmark NZSE-40 capital index close down 0.35 points at 1910.60. The top 10 index closed 0.11 down at 857.15 and the small stocks index gained 10.28 to 5594.49.

Topping the $66 million turnover was Telecom which gained 1c to 439, a few cents above its 14-month low of 435, on turnover of $13.8 million.

Telecom, which had come under "so much pressure" from critics of its strategies, appeared not to have made much response through the media, ASB Securities broker Andrew Kelleher said.

Australasian brewer Lion Nathan rose 5c to 595 on $3 million shares, after a 17c loss yesterday.

Brokers noted the stock was not very liquid and tended towards big fluctuations in share price. On Friday, Lion Nathan confirmed it was on track for a forecast 11 per cent profit rise in 2002/03.

Contact Energy closed square on 377 after sliding 22c yesterday, 15c of that due to a dividend payout.

Fletcher Building gained 4c to 338 on strong volume worth $6.3 million, and casino operator Sky City rose 12c to 794 to add to yesterday's 10c rise.

Retail stocks, which were the toast of the top 40 yesterday, had another good day.

The Warehouse closed 2c up at 722 after a solid 14c rise yesterday, while fellow retailer Briscoe Group was up 6c at 280, and Pacific Retail was up 3c to 280. The early evidence shows Christmas shopping will be strong.

Restaurant Brands rose 4c to 159 in morning trade having risen 20c during the past week ahead of announcing it had secured a cheaper chicken supplier. But it closed flat at 155.

Air NZ closed off 2c at 50 on high volume of 8.2 million shares, ahead of tomorrow's expected decision from the Government on whether it approves of the Air NZ-Qantas alliance proposal.

Auckland Airport shed 9c to 540 as investors took profits in the wake of the Auckland City Council's decision to sell half of its quarter stake.

AMP rose 10c to 1260, high flier Cavalier fell 5c to 375, Independent Newspapers fell 7c to 290 and NZ Refining rose 30c to 1850.

Fisher & Paykel Appliances fell 10c to 1035 as did its sister, F&P Healthcare to 980.

Richmond, the possible target of a takeover offer from PPCS, rose 18c to 248.

Rises outnumbered falls 47 to 42 of the 130 stocks traded.

- NZPA