NZ stocks: Montana rebounds from fall

The sharemarket closed down just over 7 points yesterday after a see-saw session among the major stocks.

"Everything really just sort of offset each other. You had Montana and Sky TV and Fletcher Energy and Building ticking the market up and Telecom and THL ticking the market down.

"Basically four or five stocks just sort of matched each other off," Macquarie Equities dealer Nathan Lewis said.

The benchmark NZSE-40 capital index closed down 7.17 points at 2010.49, while the NZSE-10 was down 6.63 points at 893.66.

Turnover was 37.14 million shares worth $103.55 million.

As the dust settled on the controversial Montana wines deal, Montana shares rebounded from Monday's heavy fall, closing up 18c at $3.80.

Lion confirmed after the market's close it had secured a controlling stake in the company.

Lion shares closed down 1c at $4.64.

Fletcher Energy and Building joined Montana's rise, adding 10c and 7c to their respective values on solid turnover. Energy closed at $9.00 and Building closed at $2.14.

Only Fletcher Forests bucked the trend to close down 1c at 31c. Fletcher Challenge chief executive Michael Andrews said yesterday a forestry joint venture between the company and China's Citic was likely to go into receivership. The future of the Central North Island partnership has been in the hands of its bank lenders since December.

Sky TV was on a roll, closing up 14c following reports it had achieved savings of around $10 million a year on its contract with state-owned broadcast company Broadcast Communications Ltd.

Telecom led the sharemarket losers, shedding 12c to $5.54 on turnover of 4.76 million shares worth $26.75 million.

Telecom will release its first half-year results tomorow.

Tourism Holdings also lost ground after the company issued a profit warning for the year to June 30, 2001. THL said it now forecast a net profit for the current financial year of $14-$16 million - down from a previous forecast of $21 million in November. THL closed down 41c at $1.38.

New Zealand's largest meat exporter, Richmond, listed yesterday at $2.40, having traded on the unlisted board about $2.20. It closed up 10c at $2.50.

Elsewhere on the market, software maker Commsoft was up 5c at 117, UnitedNetworks rose 9c to $8.15 and Southport closed up 4c at $1.29.

Electronics manufacturer PDL jumped $1.30 to $5.20 after a brokerage house announced it was standing in the market for up to 15 per cent of the shares in the company at $5.20.

The New Zealand dollar failed to fire yesterday as markets awaited word from US Federal Reserve chairman Alan Greenspan, due to speak to Congress overnight.

About 5 pm the kiwi traded at 43.75USc, barely changed from 43.74c at 7.30 am.

- NZPA