NZ stocks: Shares trade flat ahead of US holiday

12.00pm

New Zealand shares were trading sideways this morning after a mixed night on Wall St and ahead of a public holiday in the US.

Just after 11am the turnover was just $14.4 million and the benchmark NZSE-40 capital index was down 2.02 points to 2062.23.

"It's not unusual for not much to happen at the end of the month," said Bryon Burke, a retail adviser with ABN Amro Craigs Equities.

The public holiday on Monday meant there would not be too many US investors "taking positions in this part of the world" either.

Tranz Rail hit headlines this morning, hitting an all-time low of 170 this morning. By mid-morning it had recovered to 175, down 7c. The rail and ferry operator told the Stock Exchange that it knew of no reason for the fall but thought rumours might be to blame for a 10 per cent dive in its share price this week.

The company did not elaborate on the rumours, but said talks were continuing with banks over banking facilities up for renewal in October.

Guinness Peat Group was down a cent to 174 after announcing it wanted to raise its 19.9 per cent stake in Rubicon to just over 50 per cent. Rubicon was up a cent to 74, just below GPG's offer, and Fletcher Forests was untraded.

Star performer Briscoe Group was up 3c to 273 after reporting a robust half year result yesterday and giving promises of a strong full year.

Air NZ was up 1c to 61 this morning, clawing back slight losses after the airline's management hinted on Wednesday it might well end up striking up alliance with another airline.

Auckland International Airport slipped 2c to 415 after news this morning Auckland City Council, which holds a 25 per cent stake in the airport, is planning to sell its shares within the next three months.

Casino operator Sky City's rollercoaster ride continued down, 11c to 694 after a 30c gain in the wake of a record annual profit on Wednesday. Brokers put the slide down to profit-taking.

Fisher & Paykel Healthcare fell 10c to 965 after news that it was going into out of court talks with an Australian rival over a dispute on patenting.

New Zealand Refining Company was up 20c to 1700 after it reported lower sales, lower margins, but a sharply increased June year profit and a doubled dividend of $1.

Tech company Advantage Group rose 2c to 42 after announcing an annual net profit after tax of $4.46 million, a major turnaround from last year's $65.9 million in the previous year. No dividend was declared.

So far there have been 29 rises and 27 falls on 96 stocks traded.

On Wall St, technology stocks rose on Thursday after three days of selling, but blue chips ended down slightly on worries sparked by reports of economic sluggishness.

Stocks had sagged in early trading, slapped by data showing the US economy slowed sharply in the April-June quarter and the labour market weakened in recent days, as well as by a slew of gloomy forecasts by analysts.

The Nasdaq Composite rose 21.38 points, or 1.63 per cent, to 1335.76, as investors snatched up big tech issues such as Cisco Systems Inc and Microsoft Corp.

The blue-chip Dow Jones industrial average fell 23.1 points, or 0.27 per cent, to 8670.99 after weaving in and out of positive territory much of the day. The broad Standard & Poor's 500 index slipped 0.07 points, or 0.01 per cent, to 917.80.

- NZPA