NZ stocks:Top 40 share index plumbs new year lows

6.00pm

The top 40 share index careened to new lows for the year today as weaker global sharemarkets and a shaky world economic outlook continued to take toll.

The benchmark NZSE-40 capital index hit an intraday low of 1912.94 - its lowest point since October 2001 and 4 points lower than the previous low hit last week -- before settling down 4.49 points at 1920.90.

"Towards the back end of 2001 the market recovered strongly from September 11 inspired plunge and we're giving a lot of that back now," ASB Securities dealer Andrew Kelleher said.

"We are really just mirroring what's going on offshore at the moment. That little feel-good period that we went through over October/November doesn't appear to have been able to carry through to December.

"This last week we've seen some numbers being printed that have put thoughts of a global economic recovery into jeopardy again."

Turnover was moderate with 23 million shares worth $62 million changing hands against yesterday's $51 million turnover.

Top stock Telecom was responsible for much of the volatility in today's market, falling 8c to 452 in early trading before closing down just 2c at 458.

Market number two Carter Holt Harvey closed steady at 172 following news that unionised workers at its Kinleith pulp and paper mill planned to strike for 48 hours, beginning at 4pm today.

Carter Holt, half owned by US-based International Paper, said yesterday it would contest a legal injunction sought by the union against the selection process for redundancies at the mill.

Fast food franchise company Restaurant Brands closed 2c weaker at 136 -- just shy of its year low of 133 -- despite reporting third quarter sales rose 10 per cent from a year earlier.

"Restaurant Brands just can't seem to buy any friends at the moment," Mr Kelleher said.

The share price is well down on a year high of 218 struck in May.

Rail operator Tranz Rail closed a cent firmer at 93c after announcing plans to put its Wellington suburban rail network up for tender following the collapse of sale negotiations with the Wellington Regional Council.

Air New Zealand was steady at 51c after filing its applications for a strategic alliance with Qantas with competition regulators yesterday.

"Given the focus on the airline industry overnight, unchanged is not a bad result," Mr Kelleher said.

United Airlines, a key partner in the Star Alliance grouping of which Air NZ is a member, filed for bankruptcy on Monday -- the largest ever in the global airline industry -- after high costs and low airfares left the world's No 2 carrier with too much debt and not enough cash.

In other moves Sky City eased 8c to 752; Ports of Auckland added 10c to 630; Fletcher Forests eased a cent to 94c; Fletcher Building was 4c higher at 330; Fisher and Paykel Healthcare lost 10c to 995; Fisher and Paykel Appliances was 30c lower at 1015; and Ports of Tauranga added 3c to 435.

Falls outnumbered rises by 50 to 38 among the 134 stocks traded.

- NZPA