NZ Stocks: Market subdued as investors sit on sidelines

New Zealand shares were subdued today as investors tried to make sense of a barrage of news about the Iraqi war.

The benchmark NZ50 gross index ended up 5.9 points at 1914.07, while the NZSE-40 capital index added 6.8 points to 1884.81. Turnover was moderate at $67 million.

ASB Securities broker Andrew Kelleher said none of the top 10 stocks moved more than two per cent today, with investors still sidelined by the war.

Market number one Telecom added 4c to 437, buoyed by institutional interest. News yesterday that its rivals are seeking a ruling from the telecommunications commissioner on number portability charges failed to stir up investors.

"If past history is anything to go on, we could still be looking at this issue when we communicate telepathically," Mr Kelleher said, referring to the fact that the topic has been on and off the boil for the past eight years.

Sky City eased 6c to 784 as concerns about possible anti-smoking legislation lingered.

Contact Energy eased a further 6c to 425 after the Government this week raised the prospect of possible state intervention in the electricity market to regulate prices.

Tower closed steady at 199 as directors managed to placate investors at its annual meeting in Wellington.

New chairman Olaf O'Duill (correct) gave assurances that investors' money was safe and separate from the group's financial woes after the company recorded a $74.9 million net loss last year, largely due to a $39 million writedown on its Bridges arm in Australia.

"Most of the news on Tower that was pertinent has already been released to the market," Mr Kelleher said.

Air New Zealand gained a cent to 51c after the airline and Wellington Airport announced yesterday they were taking a dispute over $7 million in aeronautical fees to court.

Fletcher Building dipped a cent to 347 after institutional shareholder Axa said it had sold down part of its holding.

Fisher and Paykel Healthcare eased 5c to 925, Michael Hill lost the same amount to 425, The Warehouse eased 2c to 566, Baycorp Advantage was off 3c to 135 and Briscoe Group slipped 2c to 187.

Rural services company Williams & Kettle was steady at 378 after reporting a fraud-affected January half year net profit of $5.2 million, just down from $5.5 million a year ago.

The company said it had suffered stock losses at one of its branches as a result of fraud. This matter was being investigated by the Serious Fraud Office.

In all there were 50 rises and 33 falls among the 134 stocks traded.

On Wall St, the broader Standard and Poor's 500 edged down 4.81 points, or 0.55 per cent, to 869.93. The tech-laced Nasdaq Composite fell 3.54 points, or 0.25 per cent, to 1387.47.

British markets were more confident about progress on the Iraqi front and buoyed by strong oil stocks. The FTSE 100 index closed up 31.1 points, or 0.8 per cent, at 3,793.1, bringing its rally in the last two weeks to over 15 per cent.

- NZPA