NZ stocks: Market flat on lack of corporate news

The New Zealand sharemarket traded sideways today with a seasonal lack of corporate information giving little direction.

The benchmark NZSX-50 gross index fell 0.12 per cent or 2.6 points to 2129.21, while the NZSX-40 capital index finished the session 0.11 per cent or 2.2 points lower at 2071.55 .

Turnover was $69.5 million on 21.7 million shares traded.

Market linchpin Telecom was unchanged at 505 by the market's close.

Broker Kerry Porter of Macquarie Equities New Zealand Ltd told NZPA the dearth of information at this time of the year was not unusual.

"At the moment the amount of information that's being released into the market from the listed companies is small.

"We're right in that hiatus period between June 30 and the start of the reporting season.

"You've got a lot of companies that are either balancing for their 6 month or full year results.

"Those companies that have got June 30 reporting dates will start to report in the first week of July."

Mr Porter was unable to give any comment on Tranz Rail, one of the days bigger stories because of his company's current involvement in events surrounding the rail operator.

Shares in Tranz Rail today rose above Toll Holdings's 95 cents per share bid price in a strong sign the Australian company may have to bid higher to complete its takeover.

Two of Tranz Rail's biggest shareholders, Brook Asset Management and Infratil have said they think Toll should pay a higher price since it agreed a deal over selling the tracks to the Government on Monday.

Tranz Rail shares finished today's session 2c higher at 97c.

Elsewhere, Statistics New Zealand released May retail sales figures today which showed a seasonally adjusted 0.7 per cent rise compared with April's 0.3 per cent fall.

Mr Porter said the figures were positive but "there will be nothing in those numbers in our view to stop the Reserve Bank from cutting interest rates by another quarter point on July 24". Such a rate cut had already been factored into the market he said.


Mr Porter said some market participants were attributing the market's lacklustre performance over the past few days to an asset allocation switch out of the New Zealand market.

"I think that's only a short term phenomenon," he said.

"Some of the money that comes down into this part of the world isn't money that necessarily sticks around for ever and a day, it goes where the next story is. New Zealand has been the story for the last three months or so, perhaps it's time for the money to go elsewhere.

However Mr Porter said this didn't undermine "the fundamental attractiveness of the domestic equity market".

"That will be borne out by the results that come through for that June 30 period which I think are probably going to be reasonably robust."

Among stocks to rise today were: Contact Energy up a cent to 465, Fisher & Paykel Appliances up 30c to 1300, Infratil up 2c to 207, NZX up 4c to 454, Ports of Auckland up 10c to 760, Sky City up 2c to 877, Software of Excellence up 4c to 154, TelstraClear up 8c to 509, and the Warehouse up 3c to 483.

Stocks to fall included: Auckland Airport down 6c to 576, Carter Holt Harvey down 2c to 172, Fisher & Paykel Healthcare down 10c to 1140, Hellaby Holdings down 11c to 430, Independent Newspapers Ltd down 4c to 420, Owens Group down 2c to 98, Restaurant Brands down 3c to 133, Tower Group down 10c to 154, and Waste Management.

There were 41 rises and 41 falls among 131 stocks traded today.

- NZPA