NZ Stocks: Sharemarket closes firmer ahead of airport news

6.00pm

Volumes were light on the sharemarket today as all eyes focused on a crucial meeting over the future of a quarter stake in blue-chip Auckland International Airport.

"Everyone's just waiting to happen to see what happens in the airport stock," said ABN Amro Craigs Equities retail adviser Nigel Scott.

Trading on the airport's shares were halted until after tonight's Auckland City Council meeting to determine whether the council would accept prices offered by institutional investors for its 25.7 per cent stake.

As investors waited for the outcome, the benchmark NZSE-40 climbed 13.29 points or 0.69 per cent to 1939.35, on turnover worth $43.2 million.

The bourse touched a 13-month low of 1916.51 yesterday, as investors freed up their cash reserves for the possible Auckland Airport sell-off.

Telecom, which was sold off heavily yesterday, clawed back 8c today to 465 on turnover worth $12.7 million.

But the headlines were reserved for financial services group Tower which touched a fresh low of 156, down 13c, after announcing a $75 million loss for the year to September -- more than double estimates flagged to the market last month.

The loss included a $36 million writedown of Tower's Australian unit Bridges, and compared with a $77 million profit in the year to September 2001.

Excluding that writedown, the loss was $39 million -- in line with a profit warning issued by the company last month of a $30-40 million loss.

The stock regained some ground to close at 166, down 3c.

Fellow financial services stock AMP crashed 74c to 1350 as analysts took the knife to their earnings forecasts following the company's restructure briefing yesterday.

AMP remains above its year low of 1250 but far away from its year high of 2410.

Power generator Contact Energy rose a cent to 396, despite a statement late afternoon that unusually high spot electricity prices would have a negative but as yet unspecified impact on its first-quarter revenue and net income.

Retailer Hallenstein Glasson Holdings was steady at 275 after announcing that group sales for the four months to November 30 were 6.5 per cent ahead of the same period last year.

Meat company Richmond rose 11c to 231 on the back of a possible takeover offer from South Island-based rival PPCS, even though the company said today it had no specific knowledge as to if or when an offer would be made.

Fisher & Paykel Healthcare was unchanged at 1020 as the company announced it was delisting from the Nasdaq technology index in February because of a drop-off in US shareholders.

Other moves included Calan up 3c to 81, Guinness Peat Group up a cent to 155, Lion Nathan up 22c to 622, Vending Technologies down 10c to 180 and the Warehouse up 6c to 711.

"People tend to wait on the Warehouse until they start to get a feel for Christmas numbers," said Mr Scott.

Falls outnumbered rises 42 to 36 on 125 stocks traded.

In the US overnight, technology stocks stayed mired in negative territory after a disappointing forecast from computer and printer maker Hewlett-Packard Co and sour investment calls on chip makers rattled Wall Street.

The Dow Jones industrial average erased early declines to rise 35 points, or 0.40 per cent, to 8778. The broader Standard & Poor's 500 Index was up just 0.30 of a point, or 0.03 per cent, at 921. The technology-laced Nasdaq Composite Index was down 14 points, or 0.99 per cent, at 1435.

- NZPA