NZ stocks: Forecasts, partial airport sale fuel high turnover

7.45pm

New Zealand shares ended slightly down for the week amid a slew of mainly positive company results and a relief rally for Auckland Airport.

The benchmark NZSE-40 capital index ended down 1.31 points to 1938.04 on a huge turnover worth $277 million.

Much of that turnover -- $201 million worth -- was due to the news that the Auckland City Council was selling half its quarter stake in blue-chip Auckland Airport.

The airport's shares soared 13c or 2.5 per cent to 529 after the council said it had wrangled a price of $4.90 per share out of interested institutions.

That was a fair price for both sides, said Kerry Porter, associate director of Macquarie Equities.

"The market had a view that there would be a 100 per cent sale so institutions were holding back to see what amount of stock they'd be able to access in Auckland Airport."

Brokers said the rise was predictable as an uncertainty factor had been removed, and that demand was still unsatisfied among institutions.

Market turnover was also boosted by 9.9 million shares traded in Powerco at $1.60 each. The company fell 2c to 156 as it announced a 12 per cent shortfall in its 93 million share offer had to be taken up by underwriters Macquarie Equities.

Fishing company Sanford rose 11c to 495 following bullish comments at the company's shareholder meeting yesterday. The company said it expected to improve its profit and was looking at expansion opportunities but Mr Porter noted the company was "exceptionally conservative".

"I think shareholders can take comfort they wouldn't do anything internationally unless they believed it was absolutely right. If they can't find something that they want to acquire, they'll return capital to shareholders and that's exactly what it should do."

Tower shares held steady at 166 following its $75 million annual loss reported yesterday , and squabbling between chairman Colin Beyer and former chief executive James Boonzaier over who was responsible for the company's problems.

Market heavyweight Telecom also found some support after negative publicity , staying steady at 465.

Rubber product manufacturer Skellmax fell 4c to 103 after a fairly positive annual meeting yesterday, where chairman Keith Smith expressed unhappiness with the company's share price.

Skellmax floated in June at a share price of $1.15 and was on target to meet its 12.4 million profit forecast.

Among other moves, Sky City rose 5c to 752 on a positive response to earnings speculation in an Australian newspaper; Scott Technology rose 12c to 235 after yesterday's AGM confirmed its strong order book and cash position; and Independent Newspapers rose 5c to 295 after saying it expected after tax profits to improve by about a quarter in the half year to December 31.

GDC Communications was up 6c to 131 after announcing a new managing director and non-executive director.

On the downside, Wrightson fell 13c to 116 after it issued a profit warning saying difficult trading and one-off costs would halve its half year profit to December 31.

Hallenstein Glasson eased 5c to 270 despite telling shareholders yesterday that group sales for the four months to November 30 were 6.5 per cent ahead of the same period last year.

In New Zealand the company's three clothing chains had all increased market share, but it has had difficulties turning a profit in Australia.

Mr Porter said the market had been left with a pretty positive tone as a result of all the market reports. This is the first week of the Stock Exchange's continuous disclosure policy.

The 39 rises nearly matched the 41 falls among the 131 stocks traded.

On Wall St, fears of a likely bankruptcy for United Airlines and tepid holiday trading cast doubt on a two-month rally in US equities.

The Dow Jones industrial average closed down 114.57 points, or 1.31 per cent, at 8623.28. The broader Standard & Poor's 500 Index was down 11.02 points, or 1.2 per cent, at 906.55, and the technology-laced Nasdaq Composite Index was down 19.57 points, or 1.37 per cent, at 1410.78.

- NZPA