NZ stocks: Shares fall in line with AMP and CHH

6.00pm

Share price falls in AMP and Carter Holt Harvey put the New Zealand sharemarket under pressure in trading today.

The benchmark NZSE-40 capital index closed down 6.98 points to 1983.88 on turnover worth $68 million.

One of the main culprits was a 4c or 2 per cent drop in number two stock Carter Holt Harvey's share price to 176.

"I think the market is focusing on the strength of the New Zealand dollar and how the sales of their exports in US dollars will appear less valuable in US dollars when they report next month," said Gareth Stythe, a broker with JBWere.

Another reason could have been a downbeat result from the world's second biggest forestry company, US-based Georgia Pacific. The company suffered a ratings downgrade after its net loss widened in the fourth quarter, hurt by depressed market conditions and a lacklustre US economy.

Another drag on the index was insurance and financial companies AMP, and brokers blamed the negative sentiment for spilling over on to New Zealand-based Tower as well.

AMP, in a free-fall after a fresh annual result warning yesterday, fell to a new low of 1066 before recovering to 1068, down 57c.

The stock has fallen 11.7 per cent in the last two days, as investors punish it for warning of a 2002 net loss after unusuals of around A$900 million ($975.6 million).

In a note to clients UBS Warburg described yesterday's news from AMP as "disappointing".

"After providing such detailed guidance on December 4, to downgrade earnings again less than two months later highlights the depth of the problems in the UK and the long and difficult road ahead," UBS said.

Tower Group, which has also had its problems, ebbed 3c to 199 on 1.6 million shares worth $5.5 million.

Profit-takers were blamed for rail operator Tranz Rail losing 4c of its recent gains, closing at 133. Speculation continued to swirl about whether the Government would make an offer to buy back the national track network.

On the positive side, Telecom reversed recent losses to rise 2c to 457 on $20.7 million worth of shares, and Sky City hit an all-ime high of 862, closing up 14c to 862.

Brokers said Sky City was on an upswing after releasing a better than expected forecast just before Christmas, and possibly on the back of solid tourism data yesterday.

Others on the upside included Fletcher Building, up 2c to 332, Briscoe up 3c to 279, Richmond up 8c to 283, and Fisher & Paykel Appliances up 15c to 1000.

Falls included 10c drops in Cavalier (380), Independent Newspapers (315), Port of Auckland (680) and the Warehouse (715). Guinness Peat Group remained unchanged at 150 as 1.3 million shares changed hands.

So far there have been 35 rises and 45 falls on 136 stocks traded.

On Wall St, stocks fell for the fourth straight session as a warning from President George W Bush and the US troop build-up against Iraq rattled investors already worried over the corporate outlook at the height of earnings reporting season.

The blue-chip Dow Jones industrial average dropped 143.84 points, or 1.68 per cent, to 8442.90. The broad Standard & Poor's 500 Index sagged 14.16 points, or 1.57 per cent, to 887.62. The Nasdaq Composite Index fell 11.94 points, or 0.87 per cent, to 1364.25.

- NZPA