NZ stocks: Market eases in quiet trading

6.10pm

The sharemarket drifted down today in uneventful trading.

The NZSX-50 gross index, now the only benchmark index after NZX ceased publication today of the 47-year old NZSX-40 capital index, fell 1.96 points, or 0.08 per cent, to 2591.07 points. Market leader Telecom was down 1c at 580 on turnover worth $41.2 million. Total turnover for the day was $92.7 million. Of the 145 stocks traded there were 49 rises and 45 falls.

Wood processing company Tenon rose 4c to 173, after announcing it has sold the last of its forestry assets for $165 million. The company has also settled a legal dispute with Carter Holt Harvey and Norske Skog about pulp wood supply contracts.

ASB Securities broker Stephen Wright said Tenon, formerly Fletcher Challenge Forests, had let shareholders down in the past, but was enjoying good news at the moment. "They have the momentum of positive news for a change rather than the momentum of negative news," Mr Wright said.

Restaurant Brands was up 5c at 128, despite posting a 27 per cent drop in net profit yesterday. The result was in line with market expectations and the company said its outlook was good.

Mr Wright said the 10 cent dividend the company is paying makes it a good dividend-yield stock, but added the company needs to perform well over the next two quarters in order to prove itself.

Contact Energy slipped back 9c to 550 following a 10 per cent surge this week in the wake of the canning of the Project Aqua hydro scheme.

However, TrustPower gained another 15c today to a new high of 730.

Fletcher Building rose 3c to 446 despite broking firm Macquarie taking a pessimistic view on the stock. Analyst Stephen Hudson put a $4.12 valuation on Fletcher Building, citing lower immigration and possibly fewer government contracts behind his valuation.

Auckland International Airport was up 12c at 675, Fisher & Paykel Healthcare was up 15c at 1210, Hallenstein Glasson was up 5c to 305, stock exchange operator NZX was up 5c at 865.

Mainfreight rose 2c to 180, while Fisher & Paykel Appliances fell 3c to 430, Independent Newspapers fell 10c to 475, Waste Management was down 9c at 440. Management was down 9c at 440.

- NZPA