NZ stocks: Sombre market falls in line with nervous world markets

6.40pm

The New Zealand sharemarket retreated in line with other world markets that have taken fright at the latest wave of terrorism, this time in Turkey.

Truck bombs in Istanbul killed 27 people. Markets around the world reacted negatively.

"The tone is sombre. The market was looking for an excuse to take some profit anyway," said Macquarie Equities broker David Cleal.

"There has been a definite tilt back towards defensive stocks and away from growth again in the short-term."

As well, a number of export stocks suffered as the kiwi dollar scaled fresh six-year highs at US64 cents.

The benchmark NZSX-50 gross index closed down 14.42 points, 0.6 per cent, at 2327.57, while the NZSX-40 capital index finished down 13.32 points at 2216.35. Volume was modest with 26 million shares traded worth $72.7 million.

Auckland Airport was the stock to take the brunt of the nervousness about terrorism, falling 7c to 677 and it traded as low as 675.

Air New Zealand managed to escape unscathed today, its shares closing unchanged at 46c. Yesterday, it and Qantas confirmed they would be appealing a Commerce Commission ruling against their proposed alliance.

Telecom, Contact Energy and the Australian banking stocks benefited from the move towards defensive stocks. Telecom closed down 1c at 504, Contact held steady on 530, ANZ rose 14c to 1930 and Westpac NZ rose 15c to 1715.

Carter Holt Harvey had a rough day after announcing a proposal to close its Tokoroa sawmill and partially close its remanufacturing facility in the same South Waikato town.

CHH chief executive Peter Springfield said the sawmill had run at a loss for a number of years, while the remanufacturing business was not competitive and continued to lose money.

Mr Cleal said he considers the planned closures neutral for the stock and that the impending sale of its tissue operations as more important.

But like a number of exporters, Carter Holt was hurt by the strong currency. It fell 6c to 181, Fisher & Paykel Healthcare fell 25c to 1175 and F&P Appliances fell 2c to 370.

One exporter that did not fall was fishing company Sanford, which gained 11c to 530.

Sky TV, which benefits from a strong dollar because it buys programmes in US dollars, surprisingly fell 12 to 515. Similarly, The Warehouse, a big importer, lost 5c to 515.

Restaurant Brands, which has shed 11 per cent since issuing a profit warning on Tuesday, recovered one cent today to 112.

Steel & Tube rose 5c to 375 after announcing a special dividend of 10c per share.

Fletcher Building fell sharply, dropping 9c to 405.

Repco continued to disappoint on its second day of trading, dropping 14c to 279 on turnover worth $3.5 million.

Vending Technologies fell 10 per cent or 8c to 88c.

Going against the trend, Lion Nathan rose 12c to 665, NZ Refining rose 30c to 1630, Taylor rose 10c to 225 and Westfield rose 8c to 388.

There were 37 stocks in all to rise against 41 falls among the 141 stocks traded.

- NZPA