NZ stocks: Fletcher sale dominates mixed, moderate trading

New Zealand shares ended the week slightly higher with the sale of Fletcher Forests' estate providing much of the market's focus.

At 5pm the NZSX-50 gross index was 4.85 points or 0.2 per cent higher at 2391.76 on steady turnover worth $73.3 million.

The NZSX-40 capital index was a negligible 3.51 points higher at 2222.04.

Stephen Wright of ASB Securities said that as the market neared the holiday season, trading seemed more diversified than usual, "in that Telecom volume is less than 20 per cent (of turnover) when it's normally up 30 per cent. So a few other stocks have a bit more going for them."

Fletcher Forests grabbed the limelight, grinding 3c higher to 136 as the company announced the much anticipated sale of its 106,000ha forest estate to a consortium led by Kiwi Forests Group.

The $725 million sale will see Fletcher investors receive $1.20 per share . The payout was more than people had been expecting, but there were still conditions and some uncertainty over the residual company's value, said Mr Wright.

"So the market's not got too excited about it but nevertheless it's obviously better than no deal happening and this whole thing falling apart like other times with Fletcher Forests."

Direct Broking's Brett Wilkinson agreed investors would have to revalue the company.

"The shares are still trading at discount to our valuation but nevertheless a good result for the patient Fletcher Forests investors".

Rubicon, which owns 19.9 per cent of Fletcher Forests, closed flat at 79c but peaked at one stage at 82, a year high.

Another major announcement came late in the afternoon from Infratil, which said it had moved from 77 per cent to 100 per cent ownership of Glasgow Prestwick airport in Scotland. It rose 4c to 288.

Trans-Tasman Properties was the most actively traded stock, gaining 2c to 36 on turnover of 11.2 million shares, including one large crossing of 10 million shares at 35c.

The reason for the rise was not immediately apparent, Mr Wright said.

Embattled stock Tranz Rail surged 14c to a year high of 170 after revealing that trading in the present financial year was in line with expectations and slightly ahead of 12 months ago.

However, chairman Mark Rowsthorn told the company's annual meeting that rail freight revenue was being affected by lower forestry exports because of the strong New Zealand dollar.

AMP was 9c higher at 549 after yesterday's strong debut on Australia's and New Zealand's markets as a purely Australasian financial services company.

The index's weather vane stock, Telecom, was up 2c at 516 but the $17.7 million turnover was lighter than recent days and ignored strong rises on Wall St last night.

Ports of Auckland was up 3c to 763 after plunging 45c yesterday in reaction to losing a lucrative shipping contract to Port of Tauranga. POT continued its upward run, 6c up at 429 on top of its 17c rise yesterday.

Pay TV operator Sky TV gained 4c to 533 on solid turnover worth $3.2 million, after sealing a new satellite deal .

Other moves of note included: Auckland International Airport down 8c to 690, Briscoe down 4c to 163, Carter Holt Harvey down 2c to 182, Fisher & Paykel Appliances down 6c to 390, Ebos up 5c to 330, Genesis Research up 3c to 120, Freightways up 6c to 221, Lion Nathan up 8c to 673, Restaurant Brands up 2c to 114, Turners Auctions up 8c to 455, and The Warehouse down 8c to 501.

There were 56 rises and 43 falls on 144 stocks traded.

On offshore markets overnight, the USA's blue-chip Dow and the broader Standard & Poor's 500 ended at their highest levels in about 19 months for a third straight day.

The Dow Jones industrial average climbed 102.82 points, or 1.01 per cent, to 10,248.08, while the S&P's 500 Index rose 12.70 points, or 1.18 per cent, to 1089.18, and the technology-laced Nasdaq Composite Index gained 34.85 points, or 1.81 per cent, to 1956.18.

- NZPA