NZ stocks: Telecom continues climb, but market down

A strong run by market leader Telecom was not enough to push the sharemarket into the black today.

The benchmark NZSX-50 gross index fell 5.23 points, or 0.21 per cent, to 2489.35.

The NZSX-40 capital index was also down, falling 3.43 points, or 0.15 per cent to 2277.30.

Telecom finished today's session up 3c at a two and a half year high of 576c, having peaked at 578c during the day's trading.

ABN Amro broker Matt Willis said a changed investment profile has lured investors back to Telecom.

"They have lifted their dividend payouts. That attracts a different kind of investor back into the stock," he said. He added the telecommunications sector was also coming back into favour with institutional investors.

Telecom's turnover of $49.5 million made up almost half of the day's total turnover of $108.9 million.

Mr Willis said increased offshore interest was probably behind today's higher turnover. "Because that has been distinctly lacking from what I hear over the past two days and as a result turnover has been low."

Investors reacted positively to news that Ports of Auckland was considering selling some of its waterfront properties to the Auckland City Council.

The stock rose 40c, or 5.6 per cent to 750c.

Mr Willis said the news of a possible sale was "no huge surprise".

He said the market was probably re-rating the stock because it now has a likely timeframe for a sale and possible capital distribution to shareholders.

Fisher & Paykel Appliances levelled back today, slipping 8c to 430c.

Yesterday the stock surged 38c to an all time high of 438c on an improved profit forecast.

Mr Willis said the company's previous forecast was made prior to its acquisition of Farmers Finance, which was always going to have a big profit impact.

"I think some brokers had a figure not too different to their revised figure. The stock was finding a level today - it probably overshot slightly yesterday."

Fishing company Sanford Ltd was up 4c to 510c.

This morning, the company said it was considering the possibility of merging with Sealord Group and Pacific Marine Farms Ltd.

Sanford and Maori-controlled Sealord are the two biggest New Zealand owned fishing companies.

Mr Willis said it was positive the share price had not fallen away in the wake of the news.

"They are talking merger, but really its an acquisition...usually with an acquisition where stocks have had reasonably good runs prices are inclined to slip away."

Yesterday's technical glitches which stopped trading in a number of small stocks did not put investors off the stock exchange operator NZX, which rose 10c to 800.

This afternoon the company announced plans to establish a central clearing house (CCH), which it said would protect the market from disruptive technical problems.

Other stocks on the move included: Trust Power up 4c at 690c, Turners Auctions up 4c at 418c, Waste Management down 7c at 420c, Briscoes down 2c at 140c, Carter Holt Harvey down 3c at 291c, Cavalier down 3c at 592c, Hellaby down 5c at 495c, Independent Newspapers down 6c at 470c, Lion Nathan down 14c at 650c, Michael Hill Jeweller up 8c at 522c, Nuplex up 8c at 468c and Promina up 5c at 405c.

- NZPA