Fletcher Energy stars as activity picks up

Investors are finding the New Zealand sharemarket attractive, with market participation reaching levels not seen for weeks, Cavill White Securities equities dealer Alan Wills says.

"The activity remains high in terms of market turnover - it's been good all week. The amount of market participation is higher than it's been for some time," he said.

The NZSE-40 Capital Index was down 6.05 points (0.28 per cent) to 2119.78. Smaller stocks were up, with the NZSE SCI Capital Index gaining 9.66 (0.19 per cent) to 5230.58.

Turnover was a busy $128 million, but falls outnumbered rises 45 to 42.

Market giant Telecom traded 4.7 million shares worth $35.2 million but closed down 10c at 748.

"Every day, we're seeing a lot of participation in Telecom," Mr Wills said.

The Fletcher stocks were the stars on the market yesterday, Energy in particular shining. It rallied 19c to 737, with 1.9 million stocks worth $13.8 million trading hands.

"People are realising the intrinsic value in the [Energy] stock - it's been valued around the $7.50 range so it's reaching up to that," Mr Wills said.

Forests recovered from its late afternoon selling on Thursday to close up 4c at 88, while Paper rose 1c to 248. Building was unchanged on 240.

Carter Holt topped the market in turnover terms, trading 4.7 million shares, but closed steady on 192.

Tranz Rail weakened 15c to 395.

"Tranz Rail has had a very good run recently in anticipation of major restructuring. It's run quite hard and has gone as high as $4.10," Mr Wills said.

"Now it's just coming off those high levels but there's still a reasonable amount of turnover."

Elsewhere on the market, Advantage was off 5c at 276, while Lion Nathan and Telstra were both down 10c at 495 and 930 respectively.

Both Air New Zealandstocks weakened, the A shares down 7c to 184 and Bs off 6c at 244.

The Warehouse softened 4c to 561, but Baycorp managed a rally, closing up 10c at $11.90.

- NZPA