NZ stocks: Market flat, dodges Wall Street fallout

6.00pm

The New Zealand sharemarket closed flat today on slim turnover as offshore interest all but dried up ahead of the Thanksgiving holiday in the United States.

The benchmark NZSE-40 index edged up just a third of a point to 1946.13 after closing at its lowest point since October 2001 yesterday. Total market turnover was a lacklustre 25.6 million shares worth $56.7 million.

"There was only one company announcement out of the whole top ten today - hardly a plethora," ASB Securities broker Andrew Kelleher said.

"But all in all it was not a bad effort considering offshore markets took a proverbial pummeling overnight."

Wall St stocks tumbled in late afternoon trading on Tuesday after disappointing consumer confidence data had investors pulling back after a seven-week rally in the blue-chip Dow.

The Dow Jones industrial average at the close was down 1.95 per cent at 8676.42; the broader Standard & Poor's 500 Index surrendered 2.1 per cent to 913.29; and the Nasdaq Composite Index dropped 2.53 per cent to 1444.40.

Here, rises outnumbered falls by 49 to 37 among the 129 stocks traded.

Market leader Telecom added 3c to 475 despite conceding today it was comfortable with analysts lowering their full year forecasts by about $20 million.

Two weeks ago Telecom posted a 3.3 per cent drop in first quarter net profit to $146 million.

Since its first-quarter result, five analysts in a Thomson First Call survey have lowered their estimates for the year ending June 30, establishing a new range of $632 million to $759 million.

Discount retailer The Warehouse dropped 15c to 720 after chief executive Greg Muir yesterday told reporters the firm may consider expansion beyond New Zealand and Australia in the next year to 18 months.

The company, which models itself on Wal-Mart Stores Inc, bought 115 Clint's Crazy Bargains and Silly Solly's outlets in Australia in August 2000, betting that a market five times as large offered better prospects for earnings growth.

The Warehouse now has more than half its 235 stores in Australia, though it makes only a quarter of its sales there.

Earlier this month, the stock posted its biggest one-day fall in six months after the company said the Australian business was barely profitable in the first-quarter because of delays opening new stores and two unsuccessful promotions.

Air New Zealand shed a further cent to 51c as the initial euphoria surrounding the announcement of a strategic alliance with Qantas subsided.

The airline said today it plans to file its applications for the Qantas alliance with regulatory authorities on December 9.

"People are realising that there is a lot of water to go under the bridge yet and they want to know how and why AirNZ is going to make so many savings without hurting the consumer ," Mr Kelleher said.

Tranz Rail bounced 5c to 101 and its rights shares were up 5c at 27c.

Auckland Airport recouped 4c to 516 after plunging over 4 per cent yesterday o n reports a potential trade buyer of the Auckland City Council's cornerstone stake had gone cold on the deal.

The Australian Financial Review reported yesterday that Spanish construction giant Grupo Ferrovial, after taking an initial peek at the asset, has decided to stand back and let fund managers fight over the 25.7 per cent stake.

Retailer, financier and now lingerie maker Pacific Retail Group added 5c to 300 after reporting a 14 per cent rise in half-year profit yesterday to $6.1 million for the six months to September 30.

Fletcher Building added a cent to 319 on shares worth $4.5 million, aided by a jump in the number of new building consents issued in October.

The 3412 dwelling consents was the largest monthly number since March 1976.

In other moves Carter Holt Harvey eased a cent to 165; Contact Energy added 2c to 390; Fisher and Paykel Appliances lost 10c to 1055; Ports of Auckland was up 20c at 650; and Sky City added 4c to 765.

- NZPA