NZ stocks: Shares softer as market attempts week's 5th rise

12:00 pm

The top 40 index was slightly lower this morning but brokers were hoping for a repeat performance of this week's strong trading when the index has risen on each of the first four days.

At 11.30am the NZSE-40 was down 2.15 points at 2073.97 on a modest turnover of $36 million.

It was bolstered by a pre-market trade of one million Telstra shares, which sent the stock up 2c to 675. News reports said Telstra's New Zealand interest, TelstraSaturn, could lose up to 600 jobs if it gets approval to merge with Clear.

A million Telecom shares also changed hands and the stock was steady at 512 after touching a new three month high of 515. Like much of the Top 10, Telecom had been enjoying a good run in the last few days. It is up nearly 25 per cent in just over a month.

"Certainly the leading stocks on the market have come in for very good demand which we believe is probably from a couple of offshore buyers," says Grant Williamson, of Hamilton Hindin Greene.

"The market recently has been starting out softer on profit-taking and then picking up throughout the day as foreign buyers come into the market."

Elsewhere in the market, Air NZ was mixed but poised to fall as uncertainty circulated about the airline's future financial needs. The B shares were down 1c at 34c and A shares were unchanged at 33c.

The company appointed Wrightson chairman John Palmer as chairman to takeover from acting chairman Jim Farmer.

Market darling Fisher & Paykel Healthcare was up 24c to 1785, while its sister appliance unit continued to gain strength, up 10c to 935.

The terror attacks in the United States had a dramatic instant impact on The Warehouse, but sales recovered within days, chief executive Greg Muir said today at the annual meeting.

He said the company remained optimistic about likely Christmas sales, particularly with the agricultural and dairy sectors still performing well in the economy.

Warehouse shares were equal to their all-time high this morning, up 1c at $6.85. They have climbed from $5.30 on July 31.

New Zealand Oil and Gas was up 2c to 38 after announcing a distribution of shares in its Australian subsidiary Pan Pacific Petroleum to shareholders.

Among the falls, takeover target Contact was down 5c to 402 - well below Edison's $4.14 offer - Carter Holt Harvey was down 1c to 171 and Port of Auckland was down 7c to 541.

So far there have been 32 rises and 25 falls on 108 stocks traded.

- NZPA