NZ stocks: Market finishes flat despite corporate news

6.40pm

Despite an eventful day for corporate news, the New Zealand sharemarket ended relatively unchanged today.

The NZSX-50 gross index finished 1.85 points or 0.08 per cent lower at 2291.60, while the NZSX-40 capital index ended 2.5 points or 0.11 per cent lower at 2188.60. Turnover was $74 million.

ANZ shares were on a trading halt all day as it was announced the bank is to pay Britain's Lloyds TSB $5.71 billion for New Zealand's National Bank.

TrustPower requested a trading halt following its announcement to buy back up to $85 million of its own shares.

TrustPower's pro rata share buyback, conditional on shareholder and court approval, was expected to take place in the first quarter of the 2005 financial year. TrustPower shares last traded at $5.30, down 10c.

Telecom today accepted Independent Newspapers Ltd's (INL) cash and shares takeover offer for its 10 per cent stake in Sky Television.

Telecom said it would own 10 per cent of INL and receive about $156 million after selling its shareholding in Sky TV.

INL is offering $3.35 in cash for each Sky TV share, plus three INL shares for every 10 Sky TV shares.

The offer which will close on December 5, was sent to all Sky TV shareholders today, INL executive chairman Ken Cowley said.

Meanwhile the rest of the market was reasonably active according to Amro Craigs Equities retail adviser Bryon Burke who said the surging New Zealand dollar had a lot of effect on the market today.

Fisher and Paykel Healthcare ended the day 35c lower at 1200.

"I'm assuming the reason they've taken a bit of a plunge there is in line with the strengthening New Zealand dollar against the US dollar," Mr Burke said.

"The majority of their earnings are in US dollars. It doesn't matter how long you hedge it's only a short term precautionary measure, as Carter Holt found out".

Wood processor Carter Holt Harvey lost ground earlier this week despite a better than expected quarterly result as investors questioned its ability to deal with the appreciating kiwi. However Carter Holt recovered 3c to 181 today.

Mr Burke said market leader Telecom struggled again today -- "more overseas selling again, linked to the strengthening NZ dollar".

Discount retailer The Warehouse which has seen a string of gains in recent sessions lost 11c today to finish at 574.

The company received notification of legal action which may delay the opening of its huge new Whangarei store. The stock's dip may also have been due to profit taking Mr Burke said.

Profit-taking may also have been behind Contact Energy's 4c fall to 497 today, and Auckland International Airport's 2c fall to 645.

Mr Burke said Sky City was "talk of the town on the buy side' today the stock gained 19c to 888.

Other stocks to gain today included: BayCorp Advantage up 10c to 294, 42 Below up a cent to 39, Cavalier Corp up 4c to 554, Ebos up 5c to 340, Freightways up 5c to 186, Genesis up 10c to 117, Infratil up a cent to 236, Mainfreight up 2c to 144, NZX up 4c to 470, Postie Plus up a cent to 122, Sky TV up 6c to 496, and Tranz Rail up 2c to 123 .

Stocks to fall included: Fisher & Paykel Appliances down 25c to 1475, Ports of Auckland down 5c to 845, Port of Tauranga down 3c to 425, Promina down 5c to 375, Telstra down 12c to 547, and Tower Group down 2c to 130.

There were 53 rises and 41 falls among 145 stocks traded today.

- NZPA