NZ stocks start week little changed

The New Zealand sharemarket ended virtually flat today even though there was positive news for the agriculture sector in the form of a raised Fonterra forecast payout.

The benchmark NZSX-50 index closed up 4.902 points, or 0.155 per cent, at 3165.065. Turnover was worth $82 million.

NZ Refining was the top percentage gainer today, rising 25c, or 4.95 per cent, to 530 after announcing a bonus share issue to distribute imputation credits likely to be lost when ownership of the business changes.

The bonus shares are issued fully paid from retained earnings and shareholders get one bonus share for every six held.

Fletcher Building rose 6c to 801 in the wake of news that for the first time in 16 months residential property values are higher than they were a year earlier, according to QV figures.

"Offshore markets set the tone, all being firmer today, but New Zealand really just lagged behind on lack of domestic news," said Grant Williamson, director at Hamilton, Hindin, Greene.

News that dairy cooperative Fonterra lifted its forecast payout to farmers to $6.05 per kilogram of milksolids, from the $5.10 announced in September was positive for the economy.

NZ Farming Systems Uruguay rose 1c to 45 and PGG Wrightson rose 1c to 63.

AMP was unchanged at 740 in New Zealand and analysts pondered a merger plan with AXA that will give the company scale in New Zealand.

Hallenstein Glasson rose 1c to 311 on a day it announced chief executive Roy Dillon is to step down on March 31.

Shares in Windflow Technology were suspended today after the company failed to provide its annual report.

Contact rose 2c to 604 and TrustPower rose 2c to 752. Telecom was unchanged at 252.

SkyTV rose 2c to 490. Rakon fell 1c to 118, Property for Industry fell 1c to 119 and AMP Office Trust fell 1c to 79.

Retailers struggled today. The Warehouse fell 20c to 430, Hellaby fell 8c to 155 and Michael Hill fell 1c to 64.

In the United States, stocks ended Friday's session slightly higher, shrugging off government data showing the unemployment rate hit 10.2 per cent - the highest in 26-1/2 years.

General Electric Co jumped 6.2 per cent after two analysts' upgrades and helped push the industrial sector higher.

The Dow Jones industrial average gained 0.2 per cent to end at 10,023.42, the Standard & Poor's 500 Index rose 0.3 per cent to 1069.30, and the Nasdaq Composite Index added 0.3 per cent to close at 2112.44.

- NZPA