NZ stocks: Market's fall seen mild against bigger markets

The sharemarket fell 0.6 per cent today but the dip on light turnover was seen as mild by comparison with major markets overseas.

"The tone from offshore was very negative," Macquarie Equities broker David Cleal said.

"Compared with offshore markets we look like a spring in the desert."

Monday night action overseas was universally ugly.

Britain's Financial Times-Stock Exchange 100-share index dropped through the psychologically important barrier of 3500 to end at 3480.80 - its lowest close since October 1995 and down 3.4 per cent from Friday.

The index has now shed 11.4 per cent of its value in an unprecedented 11 consecutive days of trading losses.

In the United States, the blue-chip Dow Jones industrial average closed down almost 2 per cent at 7989.56 - dipping below 8000 for the first time since October 15 - while the tech-laced Nasdaq dropped 1.3 per cent to 1325.27.

And while the local market was open, the Australian market skidded 2 per cent to six-week lows.

The indicator NZSE-40 capital index fell just 12.00 points to 1983.19 while the top 10 index fell 5.07 to 892.73 and the small stocks index fell 32.04 to 5744.10.

There were three standout performers propping the top 40 - Sky City Entertainment, Contact Energy and Fletcher Building.

Casino operator Sky scaled new heights, hitting a record 901, before easing back to 899, up 9c. ASB Securities broker Andrew Kelleher said all the indications were that Sky would exceed previous profit expectations.

Contact Energy rose 4c to 407 on early indications that there will be another dry year that will boost electricity prices.

Fletcher Building, the beneficiary of a strong domestic economy, equalled its previous best with a 3c to 343.

On the negative side, AMP was big loser, dropping 44c, 4.3 per cent, to a record low of 990 on fresh concern it will have to find more capital to put into its UK unit to maintain Pearl's solvency.

Market leader Telecom succumbed to the overseas selling, dropping 6c to 450. It dominated turnover with over $16 million of shares traded.

Carter Holt Harvey, due to report its year result tomorrow, fell 3c to 178. Brokers said they expect the company to post a strong result from Australia with the pulp and paper division the laggard.

Turnover of $59 million was boosted by the sale of 8.8 million Rubicon shares worth $6.7 million as Perry Corp topped up its stake to 19.8 per cent just ahead of the outcome of its court battle with Guinness Peat Group, also with 19.9 per cent. Brokers were unsure about Perry's motives. Perry paid 76cps and Rubicon closed 3c ahead on 74.

GPG was yesterday revealed as the mystery buyer of about 5 per cent of Tower but the latter fell back 1c to 205 while GPG was steady on 151.

Sky TV, which has run strongly with the rising New Zealand dollar, fell back 12c to 358 today. Brokers doubted the slight retreat of the kiwi fully explained the fall.

There was a parcel of 4 million Evergreen Forests, 2.75 per cent of the company, traded at 57.2c. The stock closed 3c up at 58c.

Others to buck the trend included Auckland Airport, up 2c at 542, Kirkaldies up 5c at 400, F&P Healthcare, up 5c to 1010, Vertex, up 2c at 131 and Wakefield Hospital, up 2c at 131.

Those to lose ground included: Cavalier, 7c to 360, GDC, 9c to 121, Michael Hill, 14c to 595, Lion Nathan 4c to 600, Sky Ciy Leisure, 11c to 204, Tranz Rail 4c to 136 and Westpac NZ, 12c to 1435.

In all there were 23 rises and 68 falls among the 136 stocks traded.

- NZPA