NZ stocks: Market hits lowest point since Sept 11, 2001

Solid results from Sky City Entertainment and NGC Holdings were not enough to rescue the New Zealand sharemarket from hitting its lowest level since the aftermath of the September 11, 2001 hijacked plane attacks.

The NZSE-40 capital index closed down 32.46 points, or 1.71 per cent, to 1870.56, on turnover worth $82.9 million.

Weaker overseas markets, intensifying war clouds and a soaring New Zealand dollar were blamed for the index slipping below the psychological 1900 mark.

John Cobb, manager of private stock broking for JB Were, said that even the Top 40's post-September 11 nadir - around 1806 - was brief, a couple of days at most.

"In terms of a sustained level, it really hasn't been here since August 1993," he said.

"Generally speaking, the profitability of the firms, in terms of what they're reporting and what's going on with their business, you'd imagine they'd be doing quite well, but market share prices are just continuing to head south, and that's really more a function of what's happening internationally than locally."

Blue-chip stock Sky City defied the trend, rising 15c to 845 after reporting a 39 per cent increase in interim net profit today to $52.8 million, and confirming a $60 million share buyback.

The stock bettered market expectations which averaged around $50 million and, in an upbeat commentary, hinted the group was poised for several years' more growth.

But a good result did power company NGC Holdings little good, falling a cent to 146 despite doubling its six-month profit to $35.37 million - confirming a recovery from 2001's winter wholesale power price rise.

"I think with NGC they still have a number of issues overhanging the company at the moment too, with Maui (gas field) etc," Mr Cobb said.

General malaise sent internationally driven stock Telecom tumbling 16c to 424 - its lowest level since October 2001.

The Warehouse also lost a whopping 23c to 531, although brokers said that was partly an overhang of its disappointing sales outlook.

"The retailers, there's been a bit of disappointment there but they're coming out of a very buoyant period," Mr Cobb said.

Ahead of a rash of corporate results this week, Air New Zealand lost 2c to 51 before its first half result on Thursday, Auckland Airport - which also reports that day - was up 2c at 530, Contact Energy lost 4c to 437, Fletcher Forests was down 2c at 102, and Fletcher Building shed a cent to 350.

Fisher & Paykel Healthcare shed 22c to 948, Port of Auckland was down 17c to 623, and NorthPort was down 10c to 285.

Among the few rises, INL rose 4c to 309 on positive readership survey results and advertising trends, and Designer Textiles was up 8c at 100.

There were 78 falls and 17 rises on the 142 stocks traded.

On Wall St, the blue-chip Dow Jones industrial average fell 159.87 points, or 1.99 per cent, to close at 7858.24.

The broader Standard & Poor's 500 Index lost 15.59 points, or 1.84 per cent, to 832.58. The technology-laced Nasdaq Composite Index dropped 26.65 points, or 1.98 per cent, to 1322.37.

- NZPA