NZ stocks: Small slip by benchmark index belies market's firmer tone

A modest slip by the New Zealand sharemarket's top stock and its benchmark index today belied a generally positive day across the rest of the market.

At the 5pm close the benchmark NZSX-50 gross index was down 1.21 points or 0.05 per cent, while the NZSX-All capital index was down 0.89 points or 0.10 per cent to 883.25.

"It was a tale of two markets today", Amro Craigs Equities retail adviser Bryon Burke said.

A fall by the market's benchmark index while its mid-cap index rose indicated top stock Telecom was weighing on the market today, "and dragging it into negative territory, Mr Burke said.

In fact the market was quite buoyant in some of its second line stocks.

Telecom finished the session 5c lower at 569.

Also falling today was takeover target Tenon which had risen in recent sessions on news of Rubicon's $1.85 a share partial takeover offer.

Speculation that Carter Holt Harvey may also bid for the company also pushed the stock up yesterday. But today Tenon finished 3c lower at 194. Rubicon was a cent lower at 86.

M r Burke said GPG (Guinness Peat Group) was a stand out example of the market's firmer tone outside the top stocks.

GPG was 10c higher at 220. Yesterday the company said it was strengthening its hold on British textiles company Coats.

Other investment companies on the rise including Infratil which was up 6c to 289 and Skellmax which was up a cent to 121.

Elsewhere across the top 50, Carter Holt Harvey was unchanged at 227, Contact Energy was up 2c at 544, and Fletcher Building was up 2c to 457.

Ports of Auckland was 8c higher at 758 following yesterday's news it was selling its Westhaven Marina to the Government for $52 million. Port of Tauranga was 3c higher at 465.

Fisher & Paykel Healthcare had another dollar-related rise of 5c to 1245. The New Zealand currency's fall against the green back this week has led to a flicker of investor interest in exporting companies such as Fisher & Paykel Healthcare.

Stock exchange operator NZX continued to rise today in the wake of its March quarter result yesterday, gaining 35c to 960.

ABN Amro Craig broker Matt Willis said it was expected NZX would invest in new earnings streams.

"On the current price it looks very expensive on a price/earnings basis. But I think the expectation is those earnings could be ramped in the medium term quite significantly," he said.

Fishing company Sanford fell 10c to 485 after announcing today it had ceased merger talks with Sealord and Pacific Marine Farms.

Shares in jewellery retailer Michael Hill were 15c higher at 570 after yesterday's news that same store sales in the nine months to March across the group were up 6 per cent on the same period last year.

Other shares on the move today included: Auckland International Airport down a cent 641, BayCorp Advantage up a cent to 309, Cavalier Corp down 4c to 485, Dorchester Pacific up 10c to 282, Fisher & Paykel Appliances down 2c to 438, Independent Newspapers down 2c to 484, NGC Holdings up 3c to 247,

NZOG up 2c to 70, Promina up 2c to 427, Sky City up a cent to 443, Tower down a cent to 168, TrustPower down 10c to 400, Turners Auctions up 7c to 447, Waste Management up 3c to 425, and Wrightson up a cent to 142.

Total turnover was worth $95.76 million and there were 65 rises and 42 falls among the 149 stocks traded.

- NZPA