NZ stocks: Market flat on healthy volume

The New Zealand sharemarket closed a shade lower today trading in a tight range but with solid volume.

By the 5pm close the NZSX-50 gross index was 2 points or 0.1 per cent lower at 2178.5, while the NZSX-40 capital index was 3.6 points or 0.17 per cent lower at 2102.6.

Turnover was a healthy $103.8 million on 36.5 million shares traded.

JB Were Institutional Adviser Humphrey Sherratt said volumes started off reasonably light but picked up into the afternoon.

Mr Sherratt said features of the day included a very strong result from Waste Management.

The company reported its June half year net profit rose 23 per cent to $8.5 million, and it declared a 7.5 cents per share dividend compared with 2.5 cents per share at the interim a year ago.

The result saw the company's shares rise 12c to 377 by the close.

Both Fisher & Paykel stocks rose today after Healthcare announced an upward revision of its first half profit forecast at its AGM.

The company showed "a fairly positive outlook going forward, and some reaffirmation of their growth prospects," Mr Sherratt said.

Both Fisher & Paykel Healthcare and Appliances "by virtue of their holding in Healthcare" benefited from the news with Healthcare gaining 27c to 1187 and Appliances rising 10c to 1355.

Also benefiting from an improved profit forecast was Tourism Holdings which said it expected a net full year profit of around $7.5 million compared to guidance of $4.5 million to $5.5 million including unusual items given to the market on May 6.

The company's stock rose 8c to 134 today.

Meanwhile market leader Telecom dropped a couple of cents to 528.

"A couple of cents in Telecom is pretty minor" Mr Sherratt said.

However it was interesting to see "good two way business" in Telecom since its very positive result on Tuesday, he said.

Turnover of Telecom stock at $49 million was almost half of today's total.

Discount retailer the Warehouse eased 5c to 485 today after favourable sales figures yesterday propelled it to healthy gains.

"It had a very strong run yesterday, so you would have thought that it might give up a little bit of that," Mr Sherratt said.

"I think the market really needs to see the break up of the various divisions in terms of the actual numbers and that clearly won't be out for a little while yet.

Another riser was Promina which gained 7c to 275.

Shares in troubled financial services giant AMP plunged on the open of the Australian market, a fall which was matched in New Zealand where they closed down 42c to 490.

The company announced yesterday that its subsidiary, Henderson Global Investor, was hiving off the last of its listed property trusts.

Investors were also spooked by a Merrill Lynch report that increased its forecast loss for AMP and lowered its expectations for Henderson's.

Other stocks to rise included: BayCorp Advantage up 10c to 174, BIL International up 3c to 75, Fletcher Building up 2c to 398, Hellaby Holdings up 2c to 447, Infratil up 5c to 224, NZ Refining Co up 8c to 1660, Steel & Tube up 3c to 378, and Telstra up 6c to 524 .

Stocks to fall included: Briscoe Group down 3c to 176, Genesis Power down 5c to 107, NZX down 4c to 490, Ports of Auckland down 2c to 760, Richina down 2c to 34, Richmond down 2c to 314, Sanford down 5c to 490, Sky City down 20c to 902,Tower Group down 2c to 121, and Westfield down 5c to 390.

There were 46 rises and 35 falls on 135 stocks traded.

- NZPA