NZ stocks: Sharemarket holds faith but NZX chastised

6.15pm

Investors retained faith in the sharemarket today following yesterday's collapse of discount broker Access Brokerage, but exchange operator NZX was chastised.

No direction for the local market came from Wall Street which was on an extended weekend and the local market continued to drift as it has for the past month.

The benchmark NZSX-50 gross index closed 2.51 points up at 2730.69 while the NZSX-All capital index finished 0.902 points up at 909.12.

NZX was in damage limitation mode with chief executive Mark Weldon stressing Access Brokerage was a localised problem, albeit leaving over 700 clients $5 million out of pocket. Shares in NZX, which may stump up for some of the shortfall, fell 20c to 815.


Turnover was dominated by the top two stocks, with $41m worth of Telecom shares changing hands. The market leader picked up 1c to 564. No.2 stock Carter Holt Harvey fell 1c to 233.

ABN Amro Craigs broker James Lock said the market was now focused on interest rates and while it had anticipated Thursday's likely rate hike by the Reserve Bank, that had been behind Telecom's recent weakness.

Fisher & Paykel Appliances took a further beating today, losing 15c to 405 despite a share buyback due to kick in this month. The stock has lost 14 per cent in three weeks since its result on concern about flagging Australian sales and margins being squeezed.

However, Mr Lock said: "I think the market has overdone the story".

The Warehouse lost 9c to add to yesterday's 3c loss to end on 448 as fallout from Briscoe Group's poor half year result infected the discount sector. The Warehouse is due to report on Friday.

Briscoe, which warned in August of its result, lost another 1c to 140 to add to yesterday's 2c loss.

Jewellery retailer Michael Hill International was unaffected, rising 14c to 695.

Sky City, which has had a rough ride recently as a result of legislation tightening gambling laws and restricting smoking, recovered 10c to 445.

Auckland Airport continued to digest the increased liquidity provided by the sale of a 7.2 per cent stake by Colonial First State last week. It eased 1c to 704.

Fletcher Building continued its robust run, rising 10c to 536.

Other movers in the top 50 included: Fisher & Paykel Healthcare, down 5c to 1365, Infratil, up 4c to 310, Promina, up 7c to 475, Ryman, up 4c to 320, Air NZ, up 3c to 194, Westpac NZ, down 16c to 1765 and Contact Energy, down 3c to 585.

The top ten index closed 0.50 points up at 1092.89 and the small stocks index fell 3.63 points to 7573.44.

Port of Tauranga fell 4c to 514 following the sale of more than two million shares at 510.

Lion Nathan fell 10c to 760 while Australian stock Pacific Brands fell 7c to 295.

Among the small stocks, Colonial Motors fell 8c to 301, Dorchester Pacific fell 10c to 280 and Pyne Gould Guinness rose 6c to 196.

There were 53 stocks that rose and 44 that fell among the 148 traded.

In all 28.3 million shares changed hands, worth $98.8m.

- NZPA