NZ stocks: Sharemarket in holding pattern

The New Zealand sharemarket marked time today, closing flat on mixed trade.

The NZSX-50 gross index finished 0.63 of a point or 0.03 per cent lower at 2146.35, and the NZSX-40 capital index was 0.25 of a point or 0.01 per cent lower at 2078.69.

Turnover was $78.7 million on 30 million shares traded.

Market leader Telecom remained unchanged on 508, it's lack of movement reflecting the market's general tone.

ASB Securities broker Andrew Kelleher said today's mixed trading was "indicative of us not having a strong overall feel on the direction of the market at the moment".

Mr Kelleher said markets were still waiting to see whether the " much vaunted and hoped-for" second-half recovery in the US economy would occur.

"We're getting mixed signals," he said.

"Right now we seem to be sitting in a holding pattern looking for some confirmation of whether or not we want to push markets higher or whether or not we're going to drift back from highs of a couple of weeks ago.

M r Kelleher said the trading on the local sharemarket today saw good rises from the likes of Contact Energy as well as falls by stocks like the Warehouse.

Contact Energy was up 13c to 485 following the announcement of their nine-month profit after tax which was slightly better than expected.

Mr Kelleher said The Warehouse's performance had been "skittish" of late with "a reasonable amount of sentiment" driving the stock , showing "impatience at whether the magical hand of Stephen Tindall is turning any corners for them in Australia".

"We're not seeing anything, but I think people need to be a bit more patient. It's not something that will happen overnight."

The Warehouse was down 10c to 450 by the close of trade.

The Fisher and Paykel stocks both took a bit of a knock today with Appliances falling 30c to 1320, and Healthcare down 35c to 1140.

While not sure exactly why, Mr Kelleher said both had enjoyed good runs in recent weeks and today's falls were possibly "a bit of profit taking".

Transport operator Owens Group was up 9c to 102 today. Competitor Mainfreight today offered $49.2 million for the shares in Owens Group that it doesn't already own.

Mainfreight has offered to pay $1.03 a share for the company.

Tranz Rail stock was down a cent to 101.

The cash strapped rail operator's directors today recommended shareholders reject the 95c a share takeover offer from Australia's Toll Holdings. A report by independent valuer Grant Samuel released yesterday described the offer as "unfair".

Tranz Rail chairman Wayne Walden said the company's directors were doing all they could to encourage superior offers and alternatives.

Stocks to rise today included: Auckland International Airport up 3c to 600, Fletcher Building up 3c to 400, Hellaby Holdings up 3c to 445, Michael Hill up 13c to 423, Restaurant Brands up 4c to 130, Sanford up 4c to 499, Sky TV up 3c to 468, TelstraClear up 10c to 525, Tower Group up 2c to 126, TrustPower up 6c to 471 .

Among stocks to fall today were: BayCorp Advantage down 3c to 163, Briscoe Group down 5c to 183, Carter Holt Harvey down 2c to 163, Cavalier Corp down 13c to 458, Genesis Energy down 5c to 107, NZX down 2c to 488, Ports of Auckland down 10c to 750, Promina down 4c to 278,

There were 48 rises and 39 falls among 133 stocks traded.

- NZPA