NZ stocks: Quiet day on market, NZSX-50 continues to retreat

The New Zealand sharemarket turned in a lacklustre performance today with the NZSX-50 benchmark index retreating further from its recent five year high.

At 5pm, the NZSX-50 was down 1.19 points at 2297.59, while the NZSX-40 capital index was down 1.59 points at 2200.25.

On Monday, the NZSX-50 climbed to a new five-year high of 2302.21.

Market heavyweight Telecom closed unchanged at 507, having traded $16.4 million worth on volume of 3.2 million ahead of its annual meeting in Auckland tomorrow.

There was $76.9 million worth of shares traded today on volume of 34.5 million. Among the 145 stocks traded were 60 rises and 39 falls.

ABN Amro Craigs operator Matt Willis said the day's trading had been lacklustre, but on reasonable volume and with little corporate news.

Ports of Auckland had continued its stellar run of recent, he said.

"Once again Ports of Auckland has gone from strength to strength, continuing its incredible run," he told NZPA today.

"We would say it's starting to trade around fair value and on fundamentals rather than market sentiment."

Ports of Auckland closed up 30c at 865.

Late this afternoon Fletcher Challenge Forests (FCF) confirmed it had paid $8.5 million to a suitor for its forest estate, The Campbell Group, allowing it to also negotiate with a New Zealand consortium.

FCF had previously signed a letter of intent with Campbell, including provision for a break fee of $17 million. Campbell has offered $685 million in cash for the 106,000ha estate.

However, Kiwi Forest Group (KFG) shortly after stumped up with a $725 million offer.

At 5pm, FCF shares were up 1c at 131.

"Quite clearly, on the face of it, the New Zealand consortium deal looks more attractive than The Campbell Group's deal.

"I don't know if that's, perhaps, an indication that they (FCF) are leaning towards the Kiwi deal.

"It's a very interesting proposition with those two bids on the table," Mr Willis said.

Meanwhile, better than expected August retail sales data released today failed to provide a boost for discount giant The Warehouse which fell 15c to 570.

The Warehouse has seen a reversal in its fortunes during the last day after hitting an eight-month high of 603.

Restaurant Brands gained 4c to 134 on promise of improving profitability in the second half despite a 14.7 per cent drop in first half profit announced yesterday.

Independent Newspapers Ltd was up 3c at 460 while its takeover target Sky TV was down 10c at 475.

Tranz Rail was unchanged on 110, meeting the offer price from Australian logistics company Toll Holdings which expires on Friday.

Toll now holds about 70 per cent of Tranz Rail, with the deal "looking likely to go through", Mr Willis said. Toll has been seeking a 90 per cent stake in Tranz Rail.

Shares on the slide today included: Auckland International Airport down 2c at 649, Cavalier Corporation down 11c at 535, Sky City down 5c at 858, Baycorp Advantage down 1c at 258, Lion Nathan down 2c at 611, Tower down 1c at 133, and Wrightson down 1c at 151.

Those on the up included: AMP up 13c at 768, Infratil up 2c at 230, Michael Hill International up 2c at 445, Nuplex up 1c at 416, Westpac up 7c at 1772, Contact Energy up 6c at 514, Fisher $ Paykel Appliances up 5c at 1480, and Steel & Tube up 3c at 378.

Overseas, on Wall St, the Dow Jones industrial average rose 59.11 points to close at 9654.09; the Standard & Poor's 500 Index was up 4.87 points at 1039.22; and the Nasdaq Composite Index advanced 14.40 points to 1907.86.

In London, the FTSE-100 index closed a slight 1.9 points higher at 4272.0.

- NZPA