NZ stocks: Sharemarket flat as gains offset by losses

6.00pm

The New Zealand sharemarket finished flat today as gains in some stocks were matched by losses in others including market leader Telecom and Air New Zealand.

By the 5pm close the NZSX-50 gross index was 1.59 points or 0.07 per cent higher at 2218.25, while the NZSX-40 capital index was 7.89 points or 0.37 per cent lower at 2131.58. Turnover was a sturdy $147 million.

"Not a bad day's work," ASB Securities head of advisory Stephen Wright said.

Mr Wright said there were "a few good moves" from the likes of Fisher & Paykel Healthcare, 14c higher at 1220, Appliances, 5c higher at 1455, and Fletcher Building which ended today's session 5c higher at 417.

However, " On the day it still seemed quiet, and unfortunately the companies that gained were almost virtually offset by the companies that lost, so its was difficult to make up ground," Mr Wright said.

"I think the market was definitely disappointed by the Air NZ news," he said.

Air NZ shares tumbled 7c today to 53 after the Australian Competition and Consumer Commission (ACCC) rejected the airline's proposed alliance with Qantas.

Air NZ shares had risen as much as 15c over the past two weeks on increasing hopes the proposal would get the green light from the ACCC and New Zealand's Commerce Commission.

Mr Wright said today's fall in Air NZ shares indicated the ACCC's decision was disappointment and a surprise to at least some investors.

" Having said that, there had been comment in the Australian press this morning that the answer was probably going to be no."

Mr Wright said the only other feature of today's session was the latest developments in the INL-Sky TV story.

INL, currently making a takeover bid for Sky TV, said today it was seeking a listing on the Australian stock exchange.

INL executive chairman Ken Cowley said in a statement that an ASX listing would enable more Australian fund managers to hold shares in INL.

Last month INL announced it would launch a $613 million bid for the 34 per cent of Sky TV it does not already own.

INL shares closed today up 9c at 445, and Sky was unchanged at 480.

Market leader Telecom which holds 12 per cent of Sky closed 3c lower at 508.

Stocks to rise today included: AMP up a cent to 746, Carter Holt Harvey up a cent to 168, Dorchester Pacific Group up 2c to 198, Hellaby Holdings up 2c to 486, Infratil up 2c to 227, Michael Hill up 4c to 429, Promina up 3c to 330, Sanford up 3c to 500, Sky City up 3c to 878, Steel & Tube up 23c to 365, Telstra up 6c to 559, the Warehouse up 4c to 504, Waste Management up 2c to 367, and Westfield up 3c to 375.

Stocks to fall included: BayCorp Advantage down 9c to 250, Briscoe Group down 2c to 172, Contact Energy down 2c to 475, Mainfreight down 2c to 127, Ports of Auckland down 4c to 796, Postie Plus down 4c to 118, Ryman Healthcare down 2c to 185, and Wrightson down 3c to 139.

There were 45 rises and 52 falls among the 152 stocks traded today.

- NZPA