NZ stocks: Fletcher Energy gains in thin trading

Mixed signals from overseas markets gave little direction to the New Zealand sharemarket, which finished the day down on fairly light turnover.

The NZSE-40 Capital Index was down 9.98 points, or 0.52 per cent, at 1903.06. The small companies' NZSE-SCI Capital Index rose 28.19 points to 5022.29.

David Fergusson of Greenslades said the market did not respond too badly to a New Zealand Institute of Economic Research survey out yesterday showing business sentiment was at its lowest since 1998.

Turnover was reasonably quiet at $68.56 million on 25.56 million shares, with turnover in Telecom and Fletcher Energy more than $18 million each. Fletcher Forests led market turnover by volume with 4.86 million shares traded, valued at $2.04 million.

Telecom slipped 6c to 529, while Fletcher Energy jumped 14c to 824.

"Probably the surprise of the day was Energy," Mr Fergusson said.

"[The rise] was in stark contrast to their price in the States, which was around $NZ7.87. Turnover in the US was relatively light - there were about 10,000 American Depositary Receipts traded, which is roughly 100,000 shares. That would indicate why the unit price was so out of whack with the US overnight," he said.

South Island retailer Arthur Barnett gained 20c to 100, although there was no news to explain the big rise. Last Friday, however, it posted a 57 per cent jump in profit.

DB Group rose 11c to 325 and Montana gained 5c to 305. Lion Nathan, which plans to sell its Chinese assets or find a partner to help finance the loss-making operation, sank 15c to 475.

Telstra rose 20c to 825, United Networks was up 2c to 730, Frucor gained 1c to 207 and Genesis was up 5c at 660.

On the down side, Tranz Rail shed 10c to 365, AMP was down 15c at $22.25, and Fletcher Building lost 7c at 187 while Forests was down 3c at 41.

- NZPA