NZ stocks: Market follows international markets down

Depressed international share markets set the scene for local equity trading today.

The benchmark NZSX-50 gross index was down 18.55 points at 2576.97, while the NZSX-All capital index fell 6.04 points to 875.19.

Stephen Wright of ASB Securities said today's falls followed a downturn in international markets caused by concerns United States interest rates could rise sooner than previously expected.

Today on the NZSX, top stock Telecom bucked the downward trend to rise 1c to 560, after reporting a solid third quarter result on Friday.

Despite the rise in profits, the telco's shares fell on Friday and in early trading today before recovering this afternoon.

The company has warned is 2005 result would be down as a result of a big push into the broadband market.

But Mr Wright said not all investors would be worried about the 2005 result and some would be eyeing the upcoming dividend instead. The telco is upping its quarterly dividend 50 per cent to 7.5 cents/share.

Turnover in Telecom was worth $30.6 million of the market's total turnover of $88.3 million.

Of the 158 stocks traded today there were 24 rises and 81 falls.

Rubicon and takeover target Tenon were among the few top 50 stocks to head north today.

Tenon was up 2c at 190, while Rubicon rose 1c to 86c.

Tenon today upped its profit forecast for the year ending June to around $64 million, before "recoverable partial takeover offer costs", up from a previous forecast of $58-60 million.

Meanwhile, Rubicon has sweetened its $1.85 per share takeover offer, introducing an opt-out clause to Tenon shareholders if a higher bid comes along.

Nuplex was also up, rising 3c to 503, after today upgrading its profit forecast for the June year.

On the downside, The Warehouse fell 2c to 431 after warning on Friday its full year result was likely to be at the low end of the $60 million to $70 million range.

Fisher & Paykel Healthcare fell 30c to 1230. Mr Wright said he was surprised the stock had fallen and not held steady, ahead of next week's full year results which are expected to be healthy.

Lion Nathan fell 19c to 705 after its Australian parent announced it was selling its non-gaming Australian hotels and was taking a post tax write-down of A$34 million.

Westpac NZ fell 30c to 1870 despite posting a strong result last week and announcing a A$500 million ($575 million) share buyback that will also apply to the New Zealand stock on a pro-rata basis.

Other stocks on the move today included: Auckland International Airport down 14c at 651, Fletcher Building down 5c at 434, Hallenstein Glasson down 6c at 314, Tourism Holdings down 6c at 163, F&P Appliances down 8c at 454, Carter Holt Harvey down 1c at 199, Contact Energy up 1c at 582, Sky Network TV down 10c at 520, NZX down 25c at 890, DB Breweries down 21c at 860, Independent Newspapers Ltd down 17c at 573 and Toll NZ up 5c at 160.

In the US last week, the Dow Jones industrial average fell 1.1 per cent, the Nasdaq Composite Index shrank 0.1 per cent, and the Standard & Poor's 500 index dipped 0.8 per cent.

- NZPA