NZ stocks: Sharemarket ends week in the red

The sharemarket ended the week in the red as top stock Telecom continued to drift down today.

The benchmark NZSX-50 gross index closed down 1.00 point, or 0.04 per cent, at 2507.50. The NZSX-40 capital index fell 0.22 points, or 0.01 per cent to 2286.79.

There were 56 stocks up and 39 down among the 144 traded. Turnover was 29.5 million shares worth $85.97 million, of which $5.2 million was in Telecom.

Telecom fell 4 cents today to 579, amid continuing negative publicity surrounding a new discount promotion that may end costing millions more than planned.

The stock may also be experiencing some profit taking following a strong run in recent weeks, brokers said.

Forestry company Tenon rose 6 cents, or 4.51 per cent, to 139, as investors reacted positively to comments made by the company's chief executive John Dell at an investors' briefing in Sydney yesterday.

"The CEO displayed confidence they would sell the remaining forest that they have and the business that's left, the processing business is a good business that can make money," Mr Leggat said.

Last month, Tenon, formerly Fletcher Challenge Forests, sold all but 20,700ha of its 107,000ha forest estate.

Mr Dell reiterated the company would be targeting a dividend payout ratio of between 20 to 40 per cent in the next financial year.

Shares in home and sports goods retailer Briscoe Group initially firmed 3c to 158 but then fell back to 153, down 3c on yesterday's close, after reporting flat full year results.

They have fallen from $2.28 a year earlier but are up from $1.40 earlier this month in the aftermath of the profit warning.

Briscoe shares had been under pressure last month after its last quarter sales report and a warning last month that its pre-tax profit would be 4 per cent below the 2003 result.

In the event, the bottom line was flat at $23.6 million while the pre-tax operating surplus rose to $35.89 million from $34.95 million.

The Warehouse was also down, slipping 8c to 436. Mr Leggat said investors still seemed a bit nervous about the company's immediate outlook.

Cavalier was down 15c to 480, Independent Newspapers was down 3c at 472, Michael Hill Jeweller fell 3c to 525, and Ports of Auckland was down 8c at 736.

On the positive, Baycorp Advantage was up 3c to 306, Sky City was up 6c to 442, Sky Network TV up 5c at 520, Tourism Holdings up 7c to 158, Steel & Tube was up 4c to 386 and Fisher & Paykel Healthcare rose 10c at 1170.

- NZPA