NZ stocks: Shares ease despite encouraging economic data

New Zealand shares ticked lower today, as a lack of corporate news and a decision to keep interest rates steady kept investors on the sidelines.

Order flows drove the market, and even a late rally on Wall St was insufficient to lift the light turnover of recent sessions.

"We're getting near to the end of the December reporting period, so you have these hollow periods in the market," Macquarie Equities broker Kerry Porter said.

The NZSE-50 gross index lost 0.37 points to 1909.96 on slim turnover worth $42.6 million, while the older NZSE-40 capital index slipped 0.64 points to 1896.68.

A decision by the Reserve Bank to leave the official cash rate at 5.75 per cent gave a boost to the currency but did not impact on equities, although comments about the robust economy were encouraging, said Richard Leggat, UBS Warburg's head of research.

Another healthy sign was an announcement that the $3 billion Government Super Fund, its pension fund for civil servants, was increasing its investment in the local sharemarket from 12.5 to 15 per cent.

"It's not a huge move...but it sends a good message to the soon-to-start national super scheme (Cullen Fund)," he said.

As usual, Telecom was the actively traded stock, ending up 3c at 432 and accounting for half the turnover.

Telecom's share price has seesawed after dropping to a near 10-year low of 411 this week, but yield players have supported the stock.

Tower Group slipped 8c to 197 after telling analysts it had made a net profit after tax of $5.4 million for the three months to December - down 78 per cent on the same period in 2001.

Profit-takers swooped on Fletcher Building, which weakened 10c to 360 on low volume.

The Warehouse slid 14c to 551 on softer Australian retail data.

Rural servicing firm Wrightson said it was satisfied with a 15.42 stake in biotechnology company Genesis after failing to gain its target 19.9 per cent of the biotechnology company and going unconditional today.

Wrightson closed up a cent to 112 and Genesis was flat at $1.32, a cent above the now-closed Wrightson offer price.

Stocks in the black today included Carter Holt up a cent to 177, and Contact up 6c to 446, retailer Kirkcaldies up 6c to 382, Sky City down 4c to 875, and Steel & Tube up 2c to 315.

Michael Hill rose 15c to 460, recouping nearly all of yesterday's 16c loss which drove it to an 18-month low on what brokers believed was general retail sentiment.

Falls outnumbered rises 46 to 42 on 133 stocks traded.

On Wall St, stocks rose for the first day in three as investors nibbled at battered shares, but heightened global tensions kept gains in check.

Mixed results from major retailers such as Costco and Pepsi gave further pause for thought. Costco Wholesale Corp, the largest US discount warehouse operator, fell to their lowest level in nearly three years after it posted a 5 per cent drop in quarterly profit.

Pepsi Bottling Group Inc, the largest bottler of Pepsi drinks, also cast a cloud after it warned about its 2003 earnings.

The blue-chip Dow Jones industrial average climbed 70.73 points or 0.92 per cent, to finish at 7775.60. The broader Standard & Poor's 500 Index added 7.86 points, or 0.96 per cent, to 829.85, while the technology-laced Nasdaq Composite Index rose 6.63 points or 0.51 per cent, to 1314.40.

- NZPA