NZ stocks: Market drifts in featureless trading

The sharemarket drifted today, little changed in largely featureless morning business.

Telecom's 2c fall to 580 pushed the indices into the negative. There was good turnover of $18.1 million in Telecom, which boosted the overall market's turnover to $34.5 million.

On the last day of its existence, the NZSX-40 capital index was down 0.79 at 2320.18 by 11.40am.

The 47-year-old index, originally called the Barclays Index, is being abolished by the NZX because the exchange believes it does not fairly reflect the growth in the New Zealand market, because it ignores dividend.

The new benchmark NZSX-50 gross index was down 0.63 points to 2590.26.

Shares in specialist small stocks fund investor Kingfish made an inauspicious debut, listing at a 4 per cent discount at 96 cents and falling further to 92c.

However, the free warrants were trading at 15c.

The shares were issued at $1 and each share carries an option to buy another share at the same price, exercisable on March 31 in each of 2006, 2007 and 2008.

Fisher funds was seeking to raise over $50 million and up to $75 million. It raised $58.5 million. It is a "closed end" fund that will not expand other than when the options are exercised.

Trans Tasman Properties, which yesterday received a takeover offer from 60 per cent owner SEA Holdings at 40 cents per share, fell 3c to 42c. TTP traded up 10 cents, or 28.57 per cent, yesterday ahead of the takeover announcement.

Infratil rose 3c to 275. Utilico Investment Trust Plc, controlled by British businessman Duncan Saville said in a substantial security holder notice that it now held 13.15 per cent of the company after exercising warrants.

Contact Energy continued its rise following news that Meridian Energy had abandoned plans to build Project Aqua on the lower Waitaki River. It was up 6c to 563 and has risen 30c, 5.6 per cent, since the Aqua announcement on Monday. Restaurant Brands was up 5c to 127 following its annual profit, which fell fell 27 per cent to $8.1 million.

The $3 million profit fall was despite a 2 per cent increase in sales to $304.6 million. The profit was in line with expectations and analysts said there signs of improvement in the last quarter. It held its dividend and is seen as a good yield stock.

Among other movers, Westpac NZ was down 15c to 1900, Fisher & Paykel Healthcare was up 15c to 1195, NZ Refining was down 18c to 1630, Postie Plus up 4c to 100 and Telstra was down 8c to 522.

There were 31 stocks up and 30 down among the 119 traded.

The influence from Wall Street overnight was positive. US stocks closed higher, lifting the major market indexes to three-week highs, as investors anticipated a positive jobs report later this week .

The Dow Jones industrial average ended up 52.07 points, or 0.50 per cent, to 10,381.70, while the Standard & Poor's 500 Index rose 4.53 points, or 0.40 per cent, to 1,127.00. The technology-laced Nasdaq Composite Index gained 8.06 points, or 0.40 per cent, to 2,000.63.

- NZPA