NZ stocks: Market closes down as INL returns $340m

6.15pm

The sharemarket finished down after a moderate session on NZX today, which saw Independent Newspapers Ltd (INL) return $340 million to its shareholders.

At 5pm, the benchmark NZSX-50 index was down 9.54 points at 2645.30, while the NZSX-All Capital index was down 1.86 points at 893.72.

Market bellwether Telcom was down 1c at 567 after $20.9 million worth of its shares changed hands.

Turnover on NZX was a moderate $67.7 million, and among the 155 stocks traded were 48 rises and 46 falls.

ABN Amro Craigs broker James Lock described today's session as "mixed", noting that dips in the share prices of Contact Energy and Carter Holt Harvey (CHH) had helped pull the market lower.

Contact Energy shares were down 8c at 580, while CHH was down 6c at 213.

Meanwhile, cashed-up INL's shares rose today, despite the company's capital return.

The now newspaper-less INL has cancelled one in six shares, paying shareholders $4.66 for each one cancelled.

Its shares closed up 7c at 490, ex the capital distribution.

Barry Lindsay, of NZ First Capital, said the theoretical ex-issue price was 486, resulting in a net gain so far today of 4c.

He said INL was probably firmer as a result of a recent good showing by Sky Network TV, which was static at 525.

INL holds just over 78 per cent in Sky TV.

Elsewhere, Fisher & Paykel Appliances was up 17c at 486, while F&P Healthcare was up 7c at 1280.

Mr Lock: "It (the F&P shares) is a continuation of a damn good story."

Appliances' gain today comes after a 31c rise on Friday when it said it had a deal with the US home improvement chain Lowes, which would increase the number of US outlets selling its products.

A recent dip in the New Zealand dollar had also helped the F&P stocks, Mr Lock said.

New Zealand Refining was up 99c at 1799 after it said its average profit from processing crude oil in the first two months of the year rose 86 per cent from a year earlier.

The average gross refining margin was US$6.54 ($10.57) in January and February, compared with US$3.51 for the same time in 2003, and US$4.17 in November and December.

Other shares on the move included: AMP up 4c at 670, Baycorp Advantage down 5c at 311, Cavalier down 5c at 490, Hallenstein Glassons down 5c at 305, Michael Hill International up 9c at 599, NZX up 10c at 950, Sanford up 5c at 505, and Turners Auctions up 5c at 480.

- NZPA