NZ stocks: Retailers shine after Briscoe sales report

12.00 pm

A rebound by Telecom and a buoyant retail sector after Briscoe reported its Christmas sales helped the sharemarket hold steady today.

The market's tone was helped by a good showing by blue chips on Wall St on Friday where the Dow Jones Industrial average rose 108.68 points, or 1.37 per cent, to 8053.81 although the tech-loaded Nasdaq Composite fell 1.43 points, or 0.11 per cent, to 1320.92.

The NZSE-40 capital index was down 0.70 points to 1967.86 on volume of $18.9 million by 11.30am.

Discount retailer Briscoe reported an 18 per cent increase in fourth quarter sales, helping to lift its shares 5c to 275. They rose as high as 278 at one stage.

Briscoe said the quarter was boosted by a good Christmas trading period. The group was on track to post a "satisfactory increase in profits for the full year".

"Everyone was expecting something good and they have delivered and it bodes well for The Warehouse," said ASB Securities broker Andrew Kelleher.

He said companies which did not live up to promises were punished heavily in this market but those that did were rewarded.

The Warehouse, which is due to report its Christmas sales on Wednesday, rose 1c to 707 on the back of the good Briscoe report while Pacific Retail rose 10c to 260 and Hallenstein Glasson rose 2c to 286.

Market leader Telecom, which dropped 6c on Friday and is due to report its December quarter result tomorrow, rebounded 3c to 444. Trading in its stock made up nearly a third of the total turnover.

Profit taking in Sky City Entertainment and Contact Energy, two leading stocks that have had great runs in January, saw each come off today. Contact, which closed on a record 425 on Friday, fell back 7c to 418, while Sky City fell 9c to 851.

Lyttelton Port Company fell 4c to 155 after it forecast on Friday a 3 per cent fall in volumes through its container terminal for the year ended June 30 as a result of changes involving major customers, fell 4c to 155.

Fletcher Building initially rose to a new high of 355 but then retreated to be 2c down at 352.

Richmond fell 4c to 295 despite bidder PPCS being cleared in the weekend by the Takeovers Panel to continue with its offer to take over rival meat company Richmond Ltd.

The panel ruled in PPCS' favour on three issues brought to it, two by Richmond and one by Richmond's Bell group of shareholders.

The major issue was whether the provision in the PPCS offer allowing it to waive a stated minimum acceptance condition of 90 per cent was in compliance with the Takeovers Code.

Battered AMP recovered 75 to 1080 but traded as low as 991 early in the session.

Dental software company Software of Excellence, beaten back 24 per cent on Friday after it warned of a full year loss of up to $2.5 million, recovered 11c to 98c today.

It has slumped from $3.40 just over a year ago when it was considered a market darling. The company largely blames accounting changes for the expected loss.

In all, there were 41 rises and 28 falls among the 103 stocks traded.

- NZPA