NZ Stocks: Wrightson battered on slightly positive market

6.40pm

Market heavyweight Telecom helped the New Zealand sharemarket into the black today, but rural company Wrightson took a battering.

Telecom rose 4c to a six-week high of 510, in line with a positive session in the US and a good earnings update from Nokia, which generally benefits telco stocks.

At 5pm the NZSX-50 gross index was up 4.403 points or 0.189 per cent at 2333.119 and, at its peak, was just 11 points off its year high. The NZSX-40 capital index was up 5.267 points at 2219.576.

But Stephen Wright of ASB Securities said the market could have done better. Late this afternoon the ASX was up nearly one per cent, and the Dow closed up 1.24 per cent on expectations of upbeat economic data and a stronger US dollar.

Today's New Zealand turnover was slightly above average at $70 million, with Telecom commanding $37.6 million.

The other market star today was Fisher & Paykel Appliances, which rose 10c to a new year high of 380, on $7.4 million worth of shares.

Even though the stock was due to go ex-dividend soon, Mr Wright said the company had some good press lately and there was a perception the stock would pick up following its four-for-one share split.

On the downside, Wrightson shed 14 per cent or 21c to 125 at one point but recovered to close at 133, down 13c. Yesterday, the rural servicing company warned its group earnings before interest and tax (ebit) were likely to be around 20 per cent lower in the first half to December as farmers tighten their belts. It was its second profit warning in two months.

"Don't forget Wrightson's profit is heavily skewed towards the second half. They didn't make any forecast for their second half... there may be some recovery ... (but) any more downgrades and you'll probably see the dividend under threat," Mr Wright said.

Restaurant Brands, which last week shed 11 per cent following a warning of a sales slump at its KFC franchise chain, sank another 5c today to $1.05 -- its lowest price in over two years.

One of the index's strongest performers, Sky City Casino, fell 10c to 455 on the back of a strong run and a two for one share split last week. The stock is now below the price it split at although "not significantly", Mr Wright said.

However, there were signs of revival for newly listed autoparts company Repco, which picked up 6c to 278 after lurking below its A$2.65 ($3.02) issue price.

"We just follow on from the Australian price, basically, but (the issue price) just may have been overdone. It's a momentum thing with new issues," Mr Wright said.

Hellaby rose 13c to 478 , its second strong rise in as many days, which brokers said was probably belated recognition for a positive annual meeting last week. Hellaby deals largely with imports and is benefiting from the high kiwi dollar.

Ryman rose 3c to 205 after the retirement home company yesterday posted record half year profits and said it was expecting the same again in the second half.

Air New Zealand gained a cent to 45 despite deciding to drop its court case with Wellington Airport over landing fees. It will pay

$15 million in back charges and get no concessions on future fees.

In all there were 51 rises and 44 falls among the 150 stocks traded.

Overseas, the Dow Jones industrial average closed up 120 points, or 1.24 per cent, at 9748, while the Standard & Poor's 500 Index closed up 17 points, or 1.62 per cent, at 1052. The technology-focused Nasdaq Composite Index closed up 53 points, or 2.81 per cent, at 1947.

- NZPA