NZ stocks:Tranz Rail the standout in torpid market

A sharp jump in Tranz Rail shares was the standout feature in an otherwise torpid sharemarket today.

Tranz Rail shares jumped 11 per cent this morning on speculation that the Government was in secret talks to buy back part, or all, of the railway company's tracks.

Tranz Rail's share price, which last year collapsed on a raft of worries about the company's finances - from $4.23 last March to $1.06 at year-end -- today jumped 12 cents to $1.21.

Brokers said it was a simple "knee-jerk" reaction to the speculation.

Turnover was active with nearly a million shares changing hands.

The NZSE-40 capital index was marginally in the negative, falling 2.86 points to 2007.76 on turnover worth $24 million shortly before noon.

In-play stock Fletcher Forests fell back 2c to 118 after it lifted late yesterday following active buying by UBS Warburg. The preference shares eased 2c to 117.

The company announced plans on Wednesday for a capital return of 25cps following a forest sale. Trading in the stock is being investigated by the Securities Commission and the Stock Exchange as a result of a run up in the share price ahead of the announcement.

Richmond fell another 10c to 275 on news that turkey magnate Bernard Matthews had secured a 4.3 per cent stake yesterday, driving another nail in the coffin of PPCS's takeover bid.

Carter Holt Harvey was down 2c to 187 after its 51 per cent owner, International Paper today reported it will take a US$450 million ($837 million) charge to cover a shortfall in claims payments for its building siding and roofing products.

The world's biggest paper company said it expects fourth-quarter earnings to slightly beat analysts' average estimate of US26 cents a share, as compiled by Thomson First Call. Results for the period are due on January 30 with Carter Holt reporting its annual result the day before.

Tourism Holdings shares rose another 3c to 123, having hit a 10-month high yesterday. It was revealed this week that publisher Lonely Planet named New Zealand as the world's top destination for 2003.

Independent Newspapers, which fell 3c to 326, topped the turnover at $4.5 million.

Market leader Telecom fell 1c to 463.

Among other movers, Contact Energy fell 1c to 408, Designer Textiles also fell 3c to 107, Sky City fell 8c to 837, Lion Nathan rose 5c to 600 and Restaurant Brands rose 3c to 160.

There were 38 rises and 35 falls among the 103 stocks traded.

- NZPA