NZ stocks: Investors siphon off profits

The sharemarket ended the week slightly off its highs as investors took some profits from several days of frenzied trading.

"There was a little bit of profit-taking in the market after a week of good runs," JB Were senior investment adviser David Cleal said.

The NZSE-40 index closed down 1.57 points, or 0.08 per cent, at 2073.06, on turnover worth $139.68 million. The market was still trading around its highest level since September.

Fletcher Energy once again led the field, making up just under half of the day's turnover at $62.82 million. Its stock closed down 3c at $9.52.

Building took a bit of a hammering on speculation it was to be dropped from the NZSE's top-10 board in favour of sharemarket darling Baycorp, following the Fletcher breakup.

"A suggestion that Fletcher Building will come out of the top-10 index meant that stock was a bit weaker, and Baycorp was a bit firmer," Mr Cleal said.

The speculation was confirmed after the market's close, with the Stock Exchange announcing Fletcher Building would be removed from the leader board - pending High Court approval of the Fletcher separation - on March 23. Building will remain in the top-40 index, while ailing tech stock Advantage will be removed, the exchange said.

Fletcher Building fell 7c to $2.07, while Baycorp surged 25c to $11.50.

Advantage closed down 4c at $1.18. The stock has fallen from a year high of $5.65 in April last year.

Carter Holt Harvey slipped 4c to $1.86, Contact Energy closed down 1c at $2.95, Fisher & Paykel fell 10c to $8.50 and Genesis ended down 10c at $4.40.

Air New Zealand also took a hit, with its A shares shedding 4c to $1.41 while Bs where down 4c at $1.78.

The Sydney Morning Herald reported Air New Zealand subsidiary Ansett Australia lost $A119 million in the first half ended December.

"According to airline analysts, Ansett's problems are so severe that only a massive capital injection from Air NZ's 25 per cent equity owner, Singapore Airlines, will solve the problems," the newspaper said.

Ports of Auckland, up 25c at $5.55, continued its comeback under chief executive Geoff Vazey.

Goodman Fielder closed down 7c at $1.68 after announcing the results of its strategic review.

Sky City closed up 3c at a new all-time high of $9.53, while Force eased 1c to 26c.

Stocks to gain included Telecom, up 5c at $5.88, Tranz Rail, up 5c at $4.20, Lion Nathan, up 5c at $4.85, The Warehouse, up 5c at $5.65 and United Networks, up 9c at $8.70.

The New Zealand dollar put in a reasonable performance yesterday, but kept an eye on its weaker trans-Tasman cousin recovering from hitting an all-time low.

At 5pm the kiwi traded at 42.39USc, up slightly from 42.30c at 9am. BNZ chief currency dealer Mike Symonds said the Australian dollar was going to be the key for the kiwi, "and if we see fresh lows in the aussie next week then it's likely we'll see the kiwi back below 42USc."

- NZPA