NZ stocks: Rubicon one of few stars

The sharemarket slipped 0.6 per cent yesterday as Australian investors took the day off to celebrate their Queen's Birthday holiday.

The benchmark NZSE-40 index ended down 13.09 points at 2060.56 on turnover worth $70 million, around $23 million of that offmarket.

"Broadly speaking the market was pretty quiet overall through the day," ABN Amro head of institutional dealing Nigel Scott said.

"With Australia closed, there were no real highlights and no real trading pattern. Outside several [offmarket] crossings, market volume was very light."

Mr Scott said one bright spot was the morning announcement by Fletcher Challenge spinoff Rubicon that it would return $40 million to shareholders after the sell-off of its Brisbane fuels terminal.

Rubicon said it had sold the Brisbane business to Neumann Petroleum for $A18.4 million ($23 million), effective on June 29.

Shares in Rubicon ended up 4c at 61c on turnover worth $4.6 million - its highest close since listing in March.

Among the leading stocks Telecom closed down 7c at $5.73 on turnover worth $25 million - $15 million of that offmarket - drifting off in line with negative overseas sentiment towards telcos.

Carter Holt Harvey lost 3c to $1.76 on shares worth $4.8 million and Lion Nathan ended down 3c at $4.97 after going ex-dividend to the tune of 8Ac. The decision on how many of Lion's Montana shares are declared defaulter securities is likely to be one of the few headlines in an otherwise quiet corporate diary for the week.

Sky City and Fisher & Paykel came in for a spot of profit-taking after their recent record runs, Mr Scott said.

Sky City ended down 10c at $10.10, and Fisher & Paykel lost 10c to $10.70.

Air New Zealand came off fairly lightly after the Sydney Morning Herald reported that its embattled Ansett Australia subsidiary was facing a $500 million-plus loss in the June year.

A loss of that magnitude would push the Air NZ group into a $300 million loss despite a buoyant market in which Air NZ planes have been running near capacity since the demise of Qantas NZ in April.

Air NZ's A shares closed steady at $1.09, and its unrestricted B shares closed down 2c at $1.44.

Mr Scott said such a loss had already been factored in by most analysts.

"I think the market had already pretty well anticipated that information. There are a lot of balls in the air at the moment.

"People are waiting for a few more definite answers to come out as to the way the Government is going to swing on this particular issue before they make any moves."

Retirement village operator Ryman Healthcare closed up 8c at $1.94 after unveiling a $14.1 million profit, up 12 per cent on last year.

Takeover target Richmond ended down 10c at $3.07, The Warehouse was down 6c at $5.64, and Auckland Airport added 3c to $3.55.

Mr Scott said the market could look forward to a little bit more positive action today, as Australian investors came back on board.

- NZPA