NZ stocks: Investors pocket cash after good run

The sharemarket took a breather yesterday as other markets also paused following strong performances early in the week.

"I think it's just tired. It's had a jolly good run recently," said JBWere broker Murray Rutherford.

"All unsatisfied demand has worked its way through the system."

Credit Suisse First Boston broker Phil Hardie Boys described the market as lacklustre.

"The market has had a good run and it's taking profits."

He said there were some inexplicable movements in individual stocks although some of those could be put down to rebalancing as a result of the new Morgan Stanley Capital Index.

The NZSE-40 capital index closed down 2.32 points at 2073.15 on light volume of $67.7 million.

Telecom dragged the market down but ended off its lows, down 1c at $5.09. It is still up around 23 per cent from a low six weeks ago. Trading in Telecom was worth $18 million.

Telstra was steady on $6.76 after the Commerce Commission gave its unit TelstraSaturn permission to buy rival Clear Communications.

Fisher and Paykel Healthcare fell 45c to $17.00 on profit-taking. F&P Appliances fell 15c to $9.65.

The Warehouse was down 18c to $6.60 for no particular reason other than worries about how its Christmas sales will go.

Baycorp rose 15c to $11.60 on the last day its shares trade in Australia.

Carter Holt Harvey rose 1c to $1.76 and Fletcher Building held on to its recent gains at $2.82. Lion Nathan fell 10c to $5.70.

Sky TV was one stock which had brokers scratching their heads to explain its 20c gain to $3.80. Its majority owner, INL, fell 5c to $3.62.

Contact Energy rose 2c to $4.02, Auckland Airport rose 3c to $3.93, and Tranz Rail fell 4c to $4.16.

TrustPower rose 7c to $3.40 amid rumours that major shareholder Infratil wants a showdown with the three other major shareholders.

ANZ Bank eased 8c to $21.35 and AMP fell 30c to $23.10.

Among the smaller stocks, Wakefield Hospital rose 14c to $1.55, Cavalier rose 13c to $6.23, and Renaissance fell 4c to 37c.

* The New Zealand dollar chugged ahead yesterday, fuelled by strength in its Australian cousin.

At 5 pm the kiwi was at 41.71USc from 41.54c at Thursday's close, and the aussie improved to 51.88USc (51.71c).

"Kiwi has been relatively bid again, largely due to the aussie dollar's strength really and also the euro strength overnight," one local currency dealer said.

"We have had a very tight range which isn't very exciting at all, but we are testing the top end of that range and I think it is still undecided whether we are going to break higher or lower."

US non-farm payrolls, due out today, would provide the tone for overseas trading, the dealer said. "That is actually a reasonably big mover sometimes."

- NZPA