NZ stocks: Offshore markets lend shares support

New Zealand shares ended slightly lower today but brokers reported continued buying interest in blue-chip stocks.

Local trading ignored a surge on Wall St overnight, with the NZSX-50 index closing down 5.93 points or 0.24 per cent to 2387.22. The former benchmark NZSX-40 closed 4.24 points lower at 2217.696.

Turnover was $86 million. "It feels like it's a bit quieter than that, quite frankly but there's obviously still a bit going through," said ABN Amro Craigs broker Matt Willis.

Telecom was a standout stock, as heavy trading pushed shares down 4c to 508.

Mr Willis said Telecom had been volatile and seemed to be struggling to find a trading range.

"Other than that, the market feels really quiet firm. I think it's fair to say there's net buying in the market at the moment."

Blue chip stocks were performing well, possibly on a lack of liquidity. Good performers included Fisher & Paykel Healthcare unit, which rose 26c to 1261 although no news was apparent.

Freightways appeared to have found a level around 214, up 2c, Skellmax rose 2c to 132, as did Natural Gas to 215.

"Despite the rhetoric about interest rates, it still seems like investors are chasing dividend yield as well and Natural Gas is probably the subject of plenty of yield buying," Mr Willis said.

Briscoe slid 2c to 176 after announcing that it had picked up the Super 12 rugby sponsorship deal for the 2004 and 2005 seasons.

A broker for Dunedin-based Greenslades, Paul Valk, said the move would have little impact on Briscoe's share price although it was good for Rebel Sports' profile.

Mr Willis noted that most retail stocks appeared to be markedly lagging behind their market valuations even though conditions were currently rosy.

Imported goods were cheap because of the strong kiwi dollar, and spending was still high "but there's no sign of margins growing", and the low interest rates were not expected to last.

As a result, retailers like the Warehouse (down 3c to 510) were lagging behind their market valuations.

SkyCity shares lost 3c at 464 after news that its Canbet investment in Australia was forecasting a full year loss.

Number two stock Carter Holt was unchanged at 185 as Moody's Investors Service upgraded its long-term senior unsecured credit rating outlook from stable to positive.

Brewer Lion Nathan was stable at 667 after announcing late in the session that it remained on track to post an eight to 11 per cent rise in net full year profit.

Other moves included DB Breweries up 15c to 820, Dorchester up 10c to 233, Mooring Systems up 8c to 184, Nuhaka down 19c to 476, Promina down 5c to 375, Vending Technologies up 9c to 102 and Waste Management up 8c to 406.

Among the 136 stocks traded were 46 rises and 49 falls.

There had been $22,000 worth of shares traded on the New Zealand Alternative Exchange on the day.

Overseas, United States blue chips rallied on Monday night, sending the Dow to its highest close in almost 19 months.

Investors warmed to a drop in inflation and a surge in industrial production which indicated interest rates would stay low for some time.

Overseas, the Dow Jones was up 107 points at 10,130, the Standard & Poor's 500 Index was up seven points at 1075, and the Nasdaq Composite Index was up six points at 1925.

- NZPA