NZ stocks: Shares rally from year low

6.00pm

After dropping to a fresh year low this morning, New Zealand's Top 40 index managed to rally, although a negative outlook prevailed.

"It's been a mixed day. The index finished down two (points) but the Top 10 was pretty even," said Bryon Burke, of ABN Amro Craigs Equities.

Earlier in the session, the NZSE-40 capital index was down 7 points but it closed down 2.75 points to 1921.05 on turnover worth $67.8 million. The Top 10 capital index nudged up just 0.69 points to 873.89.

Other world markets were unsettled, with Wall St staging a late rally but failing to end in the black, and Australian stocks carving out a fresh three-year low in mid-afternoon trading.

War jitters were blamed for much of the uncertainty, which earlier in the day appeared to show New Zealand investors were ignoring even good news from company results.

"The stock prices are just not responding to positive news and the ones that are slightly disappointing are really getting hammered, so you just can't win," Alan Wills of Forsyth Barr Frater Williams said this morning.

But by day's end, positive trading in the Warehouse and Sky City, two weighty stocks which have been pummelled in recent days, helped buoy the index.

The Warehouse rose from a fresh year low of 550 to close up 12c at 580, having disappointed the market with lower than expected second quarter sales this week.

Sky City Entertainment rose 9c to 840, and Contact Energy was up a cent to 452. Telecom dominated the turnover, rising a cent to 446 on trading worth $19.4 million.

Brokers said a "magnificent" interim profit result from Fletcher Building this week was finally acknowledged with a 3c rise to 356.

Apart from the Warehouse, there were mixed results for suffering retail stocks. Michael Hill recovered 10c to 495 after losing about $1 within a week on a disappointing profit outlook, and Pacific Retail rose 4c to 295.

But Briscoe fell 8c to 233 despite a strong recent result and Hallenstein Glasson eased 6c to 260, after forecasting its interim before tax profit would be close to or marginally lower than the same period a year ago.

Those rewarded for good results today included Fisher & Paykel Healthcare, up 5c to 1000 on strong trading, after posting a 51 per cent rise in net profit to $60 million for the nine months to December 31.

Turners Auctions rose 10c to 280 after reporting a 53 per cent rise in six month profit to $3 million, beating prospectus forecasts in its first result since listing in October.

Carpet maker Cavalier rose 5c to 375 after a 60 per cent rise in half year profit.

Other rises included GDC up 10c to 95, Auckland Airport up 9c to 535, and Richmond up 10c to 300.

But not all stocks with positive results this week received acclaim today -- Trans Tasman fell one cent to 25, Designer Textiles lost 7c to 100, Sky City Leisure was down 5c to 175, and Skellmax eased 3c to 106.

Other falls included Carter Holt Harvey down 4c to 172 and Sanford was down 10c to 500 after a strong rise yesterday following a profit comment related to increased fishing catches.

There have been 31 rises and 65 falls on 131 stocks traded so far.

At Wall St's close, jittery investors pushed the Dow Jones industrial average down 8.3 points, or 0.11 per cent, to 7749.87. The broader Standard & Poor's 500 Index was down 1.31 points, or 0.16 per cent, at 817.37. The technology-laced Nasdaq Composite Index was down 1.53 points, or 0.12 per cent, at 1277.44.

- NZPA