Air New Zealand shares firmed despite indicating lower profits and Tranz Rail rose after its Cook Strait ferry competitor threw in the towel, but the sharemarket still ended flat as Telecom eased.
The NZSE-40 capital index finished down 2.40 points at 1927.04 on robust turnover of 46.18 million shares worth $118.63
million. Smaller stocks again went their own way, the NZSE-SCI capital index adding 19.42 points to 5091.92. Rising stocks outnumbered falls 47 to 44.
Air NZ's A shares closed up 3c at 164 and the foreign Bs rose 6c to 231, even though the airline told shareholders at its annual meeting that high fuel costs and weak currencies meant its annual profit would be lower. However, one broker said the share price gains could reverse today.
Tranz Rail rose 15c to 350 following the withdrawal of Cook Strait fast ferry competitor TopCat. Greenslades client adviser David Fergusson said the announcement would almost certainly benefit Tranz Rail shares in the long run. "It certainly sets a good tone for the rest of the week [for the stock]. When the market digests that news fully it will be viewed in an even more positive light."
Telecom was down 6c to 552 after a 29c dive on Tuesday following Telstra Saturn and Vodafone's announcement of a strategic alliance.
Also, Reuters quoted Merrill Lynch's Richard Leggat as wondering how Telecom would fund a rumoured involvement in a consortium wanting to buy mobile assets from C & W Optus.
Adding to pressures on Telecom's share price, analysts spoken to by news agency Bloomberg said the company would report lower earnings as costs growth outpaced revenue. Telecom will report first-quarter earnings on November 14.
AMP Henderson featured with a rapidly completed stand for 13.8 million - or 15 per cent - of Restaurant Brands' stock, at 125c a share. After the stand, Restaurant Brands shares were up 13c at $1.20 and they closed a cent off that. AMP Henderson now holds 20 per cent of the company.
Vending machine company Vending Technologies debuted on the market yesterday at 112 after its $7.5 million initial public offering closed on Friday. The stock closed at 120c, up 20c from its issue price - "a very good performance," Mr Fergusson said.
Fletcher Forests was down a cent at 36. Chinese partner Citic said its $218 million bid to buy out Forests' half share had been rejected. Fletcher Forests holds its annual meeting today in Auckland.
Elsewhere, Telstra rose 30c to 840, Fletcher Energy gained 5c to 830, and Montana added 7c to 317.
- NZPA
Air New Zealand shares firmed despite indicating lower profits and Tranz Rail rose after its Cook Strait ferry competitor threw in the towel, but the sharemarket still ended flat as Telecom eased.
The NZSE-40 capital index finished down 2.40 points at 1927.04 on robust turnover of 46.18 million shares worth $118.63
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