NZ stocks: Shares maintain composure despite Wall St losses

6.50pm

The New Zealand sharemarket's benchmark index closed lower today, but strong news flow saw local stocks overall maintain their composure following two days of hefty losses on Wall St.

The NZSX-50 gross index ended today's session 7.46 points lower at 2756.77, while the NZSX all capital index closed 4.47 points down at 926.32.

In New York on Friday US stocks closed at the lowest levels of the year after weaker-than-expected July jobs data prompted investor scepticism about the strength of the US economic recovery.

ASB Securities' Stephen Wright said the market had suffered from the negative US sentiment but today's trading was not as bad as some had anticipated.

"As we expected the market is down but it's held together pretty well."

Mr Wright said Telecom and most of the market's other leaders had seen modest losses.

Telecom ended the session a cent lower at 606, while Carter Holt Harvey finished 2c lower at 212 after going ex-div at 3 cents per share.

Auckland International Airport was down 10c to 700, Fisher & Paykel Appliances was down 4c to 471, Infratil was down 9c to 298, and Steel & Tube was down 9c to 432.

Total turnover was worth $123.99 million and there were 29 rises and 71 falls among 157 stocks traded.

The day's big news was that Australian firm Prime Infrastructure had bought 53 per cent of listed energy firm Powerco.

Shortly before the market opened, Powerco confirmed that 53 per cent of its shares had been sold to Prime for about $360 million in cash and notes or 215 per share. Powerco shares ended the day 7c lower at 208.

Powerco expected Prime to shortly issue a full takeover offer to all shareholders which it would have independently assessed.

Hamilton Hindin Greene broker Grant Williamson said at 215 per share, the price was probably less than what a lot of people were expecting. "I think the debt security element in the takeover consideration has certainly put a few investors off," Mr Williamson said.

Elsewhere, courier company Freightways today posted a $15.4 million net profit for the June year. It also said it would issue a 6.9c per share fully imputed dividend.

Freightways shares ended a cent lower at 254.

"Even though the stock's slightly off, the market expected this result," Mr Williamson said.

"It was well ahead of the prospectus forecast and they seem very confident going forward as well."

Waste Management today posted an improved June half profit of $12.7 million, up 49 per cent on the $8.5 million for the previous same period. It also issued an interim dividend of 9.9c per share with imputation credits of 4.8c. The company's shares closed 15c higher at 490. ASB Securities' Mr Wright said it was a very good result, "The market liked that a lot".

Meanwhile, brokers today said Fonterra had sold its 8.4 per cent remaining stake in rural services company Wrightson. By the close of today's session it was still unclear who had bought the stake. Wrightson finished the day 3c higher at 146.

Other shares on the move today included : Air NZ down a cent to 39, APN News and Media down 5c to 465, Briscoe up 3c to 138, Fletcher Building up a cent to 485, Michael Hill up 4c to 620, Mooring Systems down 12c to 331, Pumpkin Patch down 7c to 165, Sky City down 4c to 479, Telstra up 4c to 546, Toll NZ up 5c to 192, and TrustPower up 5c to 465 .

- NZPA