Fletcher Energy leaves market in its

Fletcher Energy steamed ahead on the sharemarket yesterday, with investors fuelled by expectations that the Fletcher letter stock structure will be dismantled and Energy will be spun off as a separate unit, where its value will be fully recognised.

The stock hit highs of 775c to close up 27c at 764c on trade of 1.4 million shares worth $11 million. Fletcher Energy has gained 59 per cent since the end of March.

Yesterday's rally was on the back of continued good news for Energy, said Salomon Smith Barney dealer Belinda Stanley.

The rest of the market could not keep up - the NZSE-40 Capital Index closed down 3.85 points (0.18 per cent) at 2115.93.

Turnover was a light $79.6 million, with rises outnumbering falls 52 to 50 among the 154 stocks traded.

The consumer price index data, which was in line with economists' expectations, had little impact on the market, Mrs Stanley said.

The sharemarket was dragged down by falls in the big stocks - giant Telecom was down 3c to 745 on light trade of 2.4 million shares worth $17.6 million. However, Mrs Stanley said there seemed to be support for Telecom around the current price levels.

Number two stock Carter Holt Harvey was off 5c at 187 and Lion Nathan weakened 7c to 488.

The other Fletcher stocks made smaller moves than Energy, Building up 2c to 242, Forests down 2c to 86 and Paper 1c softer at 247.

Elsewhere on the market, Brierley Investments attracted more interest than usual, closing 3c higher at 37 on moderate turnover of 4.5 million shares.

Sky City also rallied, gaining 12c to 700, Infratil was up 2c at 127, and Ports of Auckland climbed 5c to 440.

On the downside, Tranz Rail and Auckland Airport both fell 2c to close at 393 and 265 respectively, while Baycorp shed 9c to $11.81 and The Warehouse lost 1c to close at 560.

Telstra's instalment receipts put on 5c to 545.

- NZPA