NZ stocks: NZ shares settle as turnover eases

6.15pm


The sharemarket saw a little more of its recent gains shaved in healthy trade today as investors booked profits.

The benchmark NZSX-50 gross index eased 2.07 points to 2854.74, while the NZSX all capital index was up 0.06 of a point at 949.84.

Goldman Sachs JB Were institutional adviser Joe Gallagher said after almost two weeks of consecutive up days which ended yesterday, "there's possibly an element of profit taking going on".

"Markets don't keep going up every day forever."

Turnover was healthy at $104.55 million, but was lighter than recent sessions due to a decline in Powerco turnover.

Mr Gallagher said robust trade in Powerco shares as investors sold their stakes to offshore arbitrage funds had recently helped overall volumes.

Nevertheless trade in the lines company remained considerable and it rose a cent to 212 on turnover worth $11.84 million.

Market leader Telecom finished the session unchanged at 598 on turnover worth $26.94 million. At its annual general meeting today in Wellington the telco reiterated its previously stated dividend payout policy. Chief executive Theresa Gattung knocked back media reports quoting chief financial officer Marko Bogoievski as saying that the company's dividend payout could rise as high as 90 per cent of profit.

Port of Tauranga was up 10c to 585, while Ports of Auckland was down 15c to 670. The moves were a reaction to media speculation Fonterra could move much of its freight handling from Auckland to Tauranga. "It's straight speculation still at the moment, but the share prices are responding on thin volume," Mr Gallagher said.

Carter Holt Harvey was 4c higher at 232, "recovering from recent negative reports about pulp prices".

Fisher & Paykel Healthcare was down 7c to 298 as firms in the same sector suffered losses on overseas markets.

Air New Zealand was down 4c at 162. Singapore Airlines yesterday said it had sold its 6.3 per cent stake, or 37.83 million shares, in Air New Zealand for around $61.7 million, or $1.63 per share.

Restaurant Brands rose 9c to 135 after this morning announcing a 27.5 per cent rise in net profit after tax (npat) for the September half year, to $5.4 million compared with $4.3 million for the same period last year.

Other stocks to move included: Auckland International Airport up 3c to 712, BayCorp Advantage down 11c to 325, Contact Energy down 10c to 598, Infratil up 4c to 323, Ryman Healthcare up 10c to 340, and SkyCity down 4c to 452. There were 60 rises and 34 falls among the 157 stocks traded.

- NZPA