NZ stocks: Market tiptoes higher, Warehouse embattled after downgrade

Discount retailer The Warehouse spent most of the day under siege as investors sold down its stock in a market that tiptoed higher towards the end of trading.

At 5pm, the benchmark NZSX-50 was up 3.95 points at 2440.48, while the NZSX-40 capital index was up 1.50 points at 2246.02.

Bellweather Telecom was up 6c at 573, having traded $37.5 million worth -- or 27.6 per cent -- of the $135.4 million traded on NZX today.

A profit downgrade by The Warehouse was the salient point in today's market, its shares closing down 13c at 419 after earlier hitting a session low of 389.

The trans-Tasman retailer now expected its full year profit to fall between $60 million and $70 million.

Greenslades broker Paul Valk said the market had responded angrily to the news.

"It's their Australian operation, again, that's providing the pain," he told NZPA today, noting The Warehouse had said it would review the operation on an ongoing basis.

Other brokers spoken to by NZPA held mixed views on how long the Stephen Tindall-led group should persist with its Australian arm.

Also today, ABN Amro placed 12.8 per cent of Freightways on the market at $2.15 a share.

Mr Valk said those shares were snapped up quickly as investors recognised it as a quality stock.

"I think it's been quite good in that the price has only come back (to close down) six cents (at 220)," he said.

"That's just proof in the pudding for Freightways that it's got good robust earnings and a good business."

There was $34.8 million worth of Freightways shares traded today.

Meanwhile, Sky City's mere 4 per cent rise in half year net profit to $55 million resulted in its stock finishing down 16c at 430.

It raised its dividend to 11 cents per share from 10.5c.

There were few other movements of note.

Other shares on the move included: AMP up 4c at 545, Briscoe Group up 4c at 145, Carter Holt Harvey up 4c at 191, DB Breweries down 26c at 780, Fisher & Paykel Healthcare up 2c at 1170, Hellaby down 7c at 498, Mooring Systems down 8c at 290, Contact Energy down 4c at 504, and Ports of Auckland down 20c at 695.

There were 42 rises and 58 falls among the 149 stocks traded today.

Overseas, the Dow Jones fell 21.48 points to 10,580.14, the Nasdaq composite index rose 9.60 points to 2032.58, and the Standard & Poor's 500 gain 1.25 points to 1144.92.

- NZPA