NZ stocks: Directionless market eases

5.30pm

The New Zealand sharemarket eased today in the absence of direction from the holidaying United States.

The NZSE-40 capital index just failed to hold above 2000 following a 4.90 point fall to 1999.39. Some 26 million stocks changed hands, valued at $85.4 million.

The top 10 index capital index fell 1.67 points to 901.22 while the small stocks index had a good session, rising 18.17 points to 5478.35.

Leading the market down was number two stock Carter Holt Harvey, dropping 3c to 159 ahead of its third quarter result tomorrow. The stock has dropped from 215 in mid June and investors will be eagerly hunting for snippets of positive news at tomorrow's Sydney briefing.

Propping the market up was Telecom, which ended 1c ahead at 517. Salomon Smith Barney broker Craig Robins said there was continuing solid two-way business in Telecom, where turnover totalled 8.9 million worth $46 million.

AMP rebounded 52c to 1425 following sweeping changes announced to its troubled UK executive. Its United Kingdom financial services (UKFS) businesses were split into two streams.

ANZ Bank had a solid 38c gain to 2003 on the local market but Westpac NZ shares fell 8c to 1427.

Air New Zealand continued its erratic progress of late, dropping 3c to 52 to fall into line with other Asian airline stocks that have tumbled on concern about tourism following the Bali bombing.

Among the second liners, The Warehouse fell 10c to 715, Briscoe fell 3c to 240, Lion Nathan rose 15c to 615, Fletcher Building gained 4c to 294. F&P Appliances gained 5c to 1000, F&P Healthcare gained 4c to 990 and Tower lost 6c to 354.

Powerco asked to halt trading in its shares. It announced it was seeking to raise $150 million for new acquisitions through a combination of a rights issue and a share placement, known as a jumbo placement because of the large numbers of shares able to be issued to institutions. It closed yesterday at 181.

Significant changes among the smaller stocks included a 15c gain by Cedenco to 195 and the same gain by Pacific Retail to 300, and a 14c rise by Colonial Motors to 300. NZ Refining fell 25c to 1695.

There were 43 rises and 41 falls on the 130 stocks traded.

- NZPA