NZ stocks: Shares end run of gains as Powerco party ends

6.05pm

The sharemarket's leading index ended its nine day run of gains today, easing slightly as the recent flow of funds for re-investment from Powerco investors dried up.

The NZSX-50 gross index closed 4.02 points lower at 2856.80, while the NZSX all capital index ended 0.49 of a point lower at 949.78.

Hamilton, Hindin, Greene dealer Grant Williamson said news that the Takeovers Panel was investigating New Plymouth District Council's deal for payment for its stake in lines company Powerco had cast uncertainty over Prime Infrastructure's takeover offer.

That in turn sharply reduced the volume of Powerco shares traded today.

"I think that led to not so much reinvestment being put back into the market today."

Overall, Mr Williamson said the market a bit tired in places and some leading stocks came in for some profit taking.

Lead stock Telecom was down 3c to 598, and casino operator Sky City was also down 3c to 456.

But with rises outnumbering falls 63 to 49 on 166 stocks traded, the market was not without bright spots.

Recent listing pumpkin Patch made a record high today of 225 before closing 7c higher at 220. "Certainly a good performance from them," Mr Williamson said.

Also putting in a glittering session was jeweller Michael Hill which ended 18c higher at 745.

Overall turnover at $163.22 million was boosted by $67.41 million turnover in Air New Zealand most of that being Singapore Airline's stake of 37.8 million shares, placed with institutions at 163/share.

Air NZ closed down 2c at 166.

Singapore Airlines at one stage owned 25 per cent of the airline, but had that diluted when the company was recapitalised by the Government in 2001 after the collapse of Ansett Australia. It will book a loss of close to $500m on its New Zealand investment.


Other stocks to move today included Auckland International Airport up 3c to 709, Carter Holt Harvey down 2c to 228, NZ Refining Co up 20c to 2210,Pyne Gould Corp down 10c to 640, Tower up 6c to 223, and The Warehouse down 5c to 420.

- NZPA