NZ Stocks: Shares hold out against negative offshore tide

The New Zealand sharemarket ended broadly weaker today but held its ground against a steep fall on global markets.

The benchmark NZ50 gross index closed down 11.03 points, just over half a per cent, to 1905.40 on turnover worth $83.8 million. The NZSE-40 capital index lost 10.24 points, or 0.52 per cent to 1878.04.

Volumes were light as investors stayed on the sidelines, "waiting to see how things develop in Iraq," said Grant Williamson, a partner with Hamilton, Hindin, Greene.

However, New Zealand compared well with a sharp downturn on rattled American and British markets. Stocks sank more than 3 per cent on the Dow following a week in which the index had its best performance for 20 years.

The British FTSE-100 also fell some 3 per cent as profit-takers took advantage of sinking hopes that the Iraqi war would be an easily winnable affair.

As far as New Zealand was concerned, "we never went up with them and fortunately we're not falling with them either," Mr Williamson said.

Energy stock NGC Holdings dominated about a quarter the turnover after the sale of 15.5 million shares at $1.40.

The stock closed 8c down at 140 after Hutt Mana Energy Trust reduced its stake from 9.8 to 8.2 per cent.

Vertex was stable at 143. During the day, the Securities Commission announced it had found no evidence of insider trading prior to a Vertex profit warning last September. After the market closed, Vertex announced South Island businessman and shareholder George Gould would be taking over as chairman.

Mr Williamson said people would be hoping the man who helped turn around Designer Textiles "can spin his magic" on the plastics manufacturer as well.

Market leader Telecom recovered from a weaker opening to end flat at 433 on turnover worth $12 million. Mr Williamson said the stock has been largely moving on order flows and appears to have found its level in the $4.20 range.

Port of Tauranga bucked the general trend, up 13c to 410 on $7.7 million worth of shares.

Other leaders included Fletcher Building down 4c to 348, Auckland Airport down 3c to 515, Carter Holt Harvey off 2c to 173, and Fletcher Forest preference shares, which eased a cent to 103 after the company announced yesterday it was splitting its forest ownership from its marketing and other operations.

Casino operator Sky City fell 9c to 793 in the wake of no-smoking legislation concerns. The company also announced the buyback of 60,000 ordinary shares at $7.95 each, part of its $60 million buyback plan.

Recent retail darling Briscoe Group continued to fall, by 5c to 186, after disappointing the market with a slightly lower first half result last week.

Retailers and investors were starting to worry about tougher trading as a result of drought and weaker export returns in the rural regions, brokers said.

Falls outnumbered rises by 50 to 28 on 128 stocks traded.

Offshore, the Dow Jones industrial average sank 306.59 points, or 3.60 per cent, to 8215.38. The broad Standard and Poor's 500 index slid 31.56 points, or 3.52 per cent, to 864.23. The tech-laced Nasdaq Composite Index tumbled 52.06 points, or 3.66 per cent, to 1369.78.

- NZPA