Allied Farmers shares fall in day of contrasts

The price of Allied Farmers shares dropped like a stone when they resumed trading today while Nuplex and Hallenstein Glasson rose after expressing optimism about profit outlooks.

It was a day of contrasts on the NZX today and overall the NZ50 index fell 9.388 points, or 0.3 per cent, to 3122.916. Turnover was worth $70.92 million. There were 40 rises and 34 falls among the 114 stocks traded.

Allied Farmers shares came out of a trading halt at 11.45am today after Hanover investors yesterday voted narrowly in favour of Allied's plan buy Hanover assets, issuing new shares at 20c each to do so.

The existing shares plunged as low as 13c and closed at 15c, down 13.16 per cent.

"It was sort of like watching a slow motion train wreck. It was not pretty," said Ross Cuthbert of Craigs Investment Partners.

"The thing is it is really only the start," he said. Hanover and United debenture holders don't have the new shares yet.

There was also plenty of other news for investors to trade off. Hallenstein Glasson rose 2c to 315 after chairman Warren Bell said the company's first half profit could be "comfortably ahead of last year".

Nuplex rose 20 to 280 after upping its profit forecast. NZ Windfarms fell a cent to 45 after signalling a potential capital raising in February or March next year.

AMP rose 24c to 792 in this market after it was announced in Australia that National Australia Bank is topping AMP's bid for Axa Asia Pacific.

NZ Refining fell 15c to 390 after highlighting its difficult trading environment in a statement.

Among the leaders, Fletcher Building fell 9c to 765 and Telecom was unchanged at 239. Contact fell 14c to 576, SkyCity rose 2c to 329 and Auckland Airport rose 1c to 189.

Tower rose 7c to 198. TrustPower rose 5c to 720 and Tourism Holdings rose 6c to 80. Mainfreight rose 12c to 576 and NZ Farming Systems Uruguay rose 1c to 48.

US stocks were little changed on Wednesday after the US Federal Reserve reiterated its intention to keep interest rates low for the foreseeable future.

The Dow Jones Industrial Average slipped 10.88 points, or 0.1 per cent, to end at 10,441.12. The Standard & Poor's 500 Index gained 1.25 points, or 0.11 per cent, to 1109.18 and the Nasdaq Composite index added 5.86 points, or 0.27 per cent, to 2206.91.

- NZPA