NZ stocks: Giant Telecom down to 39-month low

Sharemarket giant Telecom fell to a 39-month low yesterday, making it the worst-performing stock in the Top 40 index over the past three months.

Telecom, which makes up one-quarter of the sharemarket by value, fell as low as 649 - a 31c drop on Wednesday's closing price, said Cavill White Securities equities dealer Alan Wills.

It rallied yesterday, ending the session at 672 - a price it has not seen since May 1997 - on heavy volume of 12.3 million shares worth $82 million.

Mr Wills said: "The currency is unsettling offshore investors and people are deciding what Telecom is going to be doing in terms of being a high-yield stocks to being more growth-oriented."

On the NZSE-40, falls outnumbered rises 60 to 57 among the 160 stocks traded, with turnover totalling $177.84 million.

Fletcher Energy was heavily traded, with $18.6 million worth of shares changing hands.

It gained 5c to 795, while Building also rose 5c to 225 and Forests was up 1c to 91.

Mr Wills said Energy's rise was due to continuing speculation that the stock was going to be taken over, combined with increasing oil prices and the weaker dollar.

The Warehouse also succumbed to the currency's pull, falling 17c to 583.

"The Warehouse is currency-oriented because it imports most of its products," he said.

"A low dollar makes their imports more expensive and it's doubtful they'd make their products more expensive so it will eat into their profits."

Also losing ground yesterday, Baycorp came off 35c to $12.55, GDC was 15c lower at 450 and Advantage fell 8c to 270.

Fisher & Paykel, Sky City and Sky TV all lost 10c, closing at 740, 762 and 370 respectively. Auckland Airport, Frucor and INL fell 4c to 295, 229 and 388.

Among the few stocks moving ahead, Lion Nathan was up 5c to 480, Contact gained 3c to 259 and Tower was 2c stronger at 534.

- NZPA