NZ stocks: Shares mildly negative on low pre-holiday turnover

12.00pm

The New Zealand sharemarket edged downwards this morning on scant turnover.

Just after 11am the NZSE-40 capital index had fallen 2.42 points to 1923.01 on $13.6 million worth of shares. The index tested new year lows around 1912 on Tuesday as pre-Christmas lethargy set in.

Tranz Rail was well supported after yesterday's 11c rise, losing just a cent today to 103.

Yesterday was a big day for the rail company, whose $66 million five-for-seven renounceable rights issue closed at 75c a share. It also put the Wellington rail network up for tender, giving investors more certainty about that process.

Auckland International Airport, which yesterday enjoyed a big crossing of shares, was the most actively traded stock again today, rising 4c to 537 on turnover worth $4.4 million.

The stock rose 11c yesterday and one dealer said this showed there was residual demand for airport shares after the Auckland City Council sold half its 25 per cent stake in the airport to institutions last week.

Sky City, which also traded heavily yesterday, rose 2c at 755.

Top stock Telecom lost 2c at 450, touching a new year low of 449 at one stage.

Telecom was "struggling to find its feet", Forsyth Barr Frater Williams broker Alan Wills said, but seemed to be holding around the $4.50 level after edging down for many days in a row.

In other moves, Carter Holt fell 1c to 174; Port of Tauranga was up 4c to 435; ingredients manufacturer Cedenco rose 5c to 185, jeweller Michael Hill rose 10c to 590, and Independent News Ltd was down 2c to 300.

Its two-thirds owned subsidiary Sky TV rose 5c to 318 after a media report that Telecom and Sky were looking at ways of broadcasting down Telecom's copper wire network, removing the need for satellite dishes.

All up, there were 29 rises and 28 falls among 106 stocks traded so far.

On Wall St, stocks rose for a second straight day, boosted by an analyst's forecast of higher sales at software maker Oracle Corp and hopes that a year-end rally will ease the pain of a tough year .

The Dow Jones industrial average closed up 14.88 points, or 0.17 per cent, at 8589.14. The broader Standard & Poor's 500 Index was up 0.51 of a point, or 0.06 per cent, at 904.96. The Nasdaq Composite Index was up 5.83 points, or 0.42 per cent, at 1396.59.

- NZPA