NZ stocks: Shares close a touch lower as cautious tone emerges

6.15pm

The sharemarket closed slightly lower on moderate turnover today as some company results this week pointed toward the prospect of a cooling economy.

The NZSX-50 gross index closed 3.65 points lower at 2734.40, while the NZSX all capital index ended 1.41 points lower at 919.75.


Total turnover was worth $92.76 million and 59 stocks rose and 46 fell among the 156 traded.

"The tone to the market is interesting," Amro Craigs Equities operator Matt Willis said.

"There's a sense of caution out there."

"The concern is New Zealand is on the verge of a slowing economy."

"The comments from Fisher & Paykel Appliances this week about their concerns are probably a good indicator of that".

Also, last week's jobs data, was "as good an indicator as any that the economy is running at full capacity.

"We can't continue to run at this sort of growth."

However he added the local market looked "reasonably priced" with some stocks showing signs of having slowing activity factored in to their price.

Overall the favourable string of results reported this week continued today.

Independent Newspapers, 44 per cent owned by Rupert Murdoch rose 29c to 502, after it announced merger plans with its 78 per cent-owned Sky TV last night. The company also today reported a net profit of $70.9m, down from $388m when it sold its newspapers to Fairfax.

Sky TV rose as up 10c to 542. It reported a June year net profit of $35.3m against $700,000 a year earlier.

Mr Willis said part of the two companies' rise would be down to expectations of a good cash and shares offer to minority shareholders in order to win the 75 per cent approval needed effect the proposed merger.

"It's going to take a very attractive deal to force some of the key players to come to the party," he said.

Meanwhile market leader Telecom ended the day 5c lower at 584. It has continued to decline since it posted its annual result earlier this month, despite announcing a boost to its dividend payout policy. Mr Willis expected the stock to find support soon from dividend chasers.

Jeweller Michael Hill closed 28c higher at 658 after posting a 30 per cent lift in net profit to a record $15.1m with good sales growth in Australia and New Zealand.

"They're starting to see the benefits of an offshore strategy that is really working," Mr Willis said.

Forest products company Tenon was down 3c to 199. It reported a full year net lost of $42m.

Nuplex was down 12c to 518 despite reporting a 38 per cent lift in net profit to $28.4m plus a dividend hike.

Carpet maker Cavalier rose 4c to 497. It posted a record net profit after tax (npat) of $21.01 million, up from $18.3 million the year-earlier.

Elsewhere, Fisher & Paykel Appliances recovered 3c to 425 following its battering earlier in the week following its result.

AMP, also pounded following its result, regained 7c to 658.

Other stocks to move included Ebos down 5c to 385, Fisher & Paykel Healthcare down 10c to 1320, Fletcher Building down 4c to 516, Mooring Systems up 6c to 365, Port of Tauranga down 3c to 512, Promina down 10c to 430, Sky City down 4c to 460, and Turners Auctions up 16c to 490.

- NZPA