NZ stocks: Good results fail to shift bearish index

The New Zealand sharemarket enjoyed high turnover today, but even good results from Air New Zealand and Auckland Airport could not pull the index out of its recent trough.

The NZSE-40 capital index settled at its lowest close for 16 months, down 1.51 points to 1873.87, on turnover worth $115.8 million. Wall St's Dow Jones industrial index dived considerably lower, losing 1.3 per cent.

One broker suggested the index - which has lost about 5 per cent since late last week - was seeing some selling because of the rising kiwi dollar.

"Our currency's very strong and a lot of offshore investors who invest in our market ... they probably see this as a chance to lock in the profits," said Cameron Stewart, an institutional dealer from ABN Amro Craigs Equities.

"It just seems to be difficult times across the market really. It's pretty tough work out there."

Telecom accounted for nearly a third of the activity, ending flat at 426 after opening 6c down - its lowest price since October 2001.

Gareth Stythe of JB Were said weak markets were behind Telecom's lows.

"It's nothing fundamental about the company, it's more international concerns about developments in the Middle East," Mr Stythe said.

Air NZ rose only a cent to 52 on light volume after delivering a slightly better than expected half-year result of $93.9 million today , compared to a $376 million interim loss the year before.

"I think people were looking for more information on the alliance with Qantas," said Mr Stewart.

Another stock which is vulnerable to travel drop-offs in the event of war is Auckland International Airport, which posted a net interim profit of $39.7 million, in line with market expectations. It gained 8c to 551 on solid turnover worth $15.2 million.

"It's a quality company with quality assets, the future looks good. In the short term war will limit the upside ... but that's out of their control," Mr Stythe said.

But investors "trounced" Baycorp Advantage for posting a net loss of $A11.9 million for the first half, compared with a $A1.6 million profit in the year-ago period. The trans-Tasman company plunged 67c at 115 on 4 million shares worth $5.1 million.

"It seems to be in a bear market, if you disappoint, your share price really comes under pressure," said Mr Stewart.

NZ Refinery dropped 50c to 1700 after posting a net after tax profit of $35.5 million for the December year, just shy of the previous year's $36.5 million figure.

New Zealand's sole refinery said the result missed its target due mainly to lower margins and the stronger dollar.

Elsewhere on the market, Fisher & Paykel Healthcare gained 17c to 967 on light volume, Sky City climbed another 13c to 885 after a stellar half year result this week, and Tourism Holdings shed 7c to 102 despite news yesterday it had doubled its first half profit.

Fletcher Building recouped 4c to 347 on $9 million turnover, Designer Textiles was down 4c at 100 on yesterday's news of a Takeovers Panel investigation, and The Warehouse lost 2c to 542.

Financial services company AMP was down 18c at 780, its lowest level since May 2000, after yesterday's loss of $A896 million for 2002.

There were 30 rises and 69 falls on the 137 stocks traded.

On Wall St the Dow Jones industrial average fell 102.52 points, or 1.30 per cent, to 7806.98; the broad Standard & Poor's 500 Index lost 11.02 points, or 1.31 per cent, to 827.55; and the Nasdaq Composite Index dropped 25.31 points, or 1.90 per cent, to 1303.67.

- NZPA