NZ stocks: Market hit by Aussie slump in wake of NAB selldown

Australian dual-listed stocks dragged the New Zealand sharemarket down today although the damage was not as extensive as across the Tasman thanks to another strong Telecom performance.

The market leader rose to 5c to 566 and at one stage touched a new 2-1/2 year high of 570. It responded positively to the move up by telecom stocks on Wall Street overnight. There was very heavy turnover of 15.4 million shares worth $87 million.

The Australian market dropped following National Australia Bank's A$1 billion share placement of AMP, St George and HHG stock yesterday.

The local benchmark NZSX-50 gross index dropped 4.32 points to 2519.92 while the NZSX-40 capital index fell 4.46 points to 2338.17.

Turnover was a very healthy 70.2 million, worth $158.2 million.

"The billion dollar selldown really hit the Australian market and by comparison we have fared well," said Macquarie Equities broker David Cleal.

"The dual-listed stocks followed the Australian market down."

Worst hit were AMP, down 21c to 515, ANZ, down 50c to 2015, Westpac NZ, down 25 to 1790, Baycorp Advantage, down 10c to 324, Promina, down 14c to 368, and Axa, down 9c to 301.

Some of the New Zealand stocks listed in Australia were also affected. Carter Holt Harvey fell 4c to 210 and Contact Energy fell 5c to 570.

Carter Holt reports its annual result tomorrow and interest has focused on the company's plans to sell its tissue business and return funds to shareholders, as well as speculation it may sell off its forests.

Mr Cleal said that AMP, which lost 14c yesterday, was approaching fair value now that the takeover premium had been removed. He said it was likely to stabilise because the hot money hoping for a takeover move had decamped.

Fishing company Sanford rose 13c on light turnover to 546. Sanford is a big mussel exporter and there was positive news on that front from fellow New Zealand company Sealord, which will get organic certification for its mussels.

Ryman Healthcare rose 6c against the trend to 226, as did Turners Auctions, up 7c to 485, Fisher & Paykel Healthcare, up 15c to 1230, Dorchester, up 10c to 285, Waste Management, up 2c to 430, Tower, up 1c to 134 and Fletcher Building, 1c to 413.

Lion Nathan fell 2c to 675. After the market closed, it said it was reviewing the ownership of its Victorian pubs portfolio. The 41 pubs, known as hotels in Australia, were bought between 1999 and 2003 as the brewer sought to increase its share of the beer market in Victoria.

Share investors will be watching the Reserve Bank's decision on the cash rate closely tomorrow.

Most economists expect rates to be left on hold although there is a chance the bank will hike the rate to quell the rampant housing market. Such a move would be a dampener for equities, brokers said.

In all today, there were 36 stocks to rise and 64 that fell among the 147 traded.

- NZPA