NZ stocks: Surplus spices up shares

The sharemarket continued to trade within a tight range yesterday, although it received a nice surprise in the form of a March quarter current account surplus.

JBWere senior investment adviser Peter Stokes said that in isolation the economic data had little impact on the sharemarket, but helped foster a more positive sentiment towards investing in equities.

The $95 million surplus was well up on expectations and compares with a $1.9 billion deficit in the December quarter.

The market will also be looking towards Friday's gross domestic product figures and to a two-day meeting of US Federal Reserve policy makers that began overnight to discuss interest rates.

The NZSE-40 capital index closed up 5.36 points, or 0.26 per cent, at 2046.68 while the small companies' NZSE-SCI capital index fell 8.50 points to 5428.58.

Turnover of 20.69 million valued at $59.44 million was topped by Telecom's $10.63 million worth of stocks trading hands.

"The market at the moment is clearly stuck in a trend which has seen the overall index trade in a fairly tight channel," Mr Stokes said.

"We are between reporting seasons so there is little on the corporate front. It just seems to be that unless it's news that's falling right outside expectations, by and large very little is moving the market."

Most NZ companies report no more than twice a year, although the quarterly US reporting seasons had some influence on NZ equities.

Telecom was down 3c at $5.42 and Telstra shed 5c to $6.80.

TrustPower, New Zealand's fourth largest electricity retailer, was unchanged at $3.65. Bidding among TrustPower's shareholders is becoming fierce ahead of changes to the takeover laws on July 1.

Contact Energy jumped 6c to $2.96.

Tranz Rail closed steady at $3.72 after being untraded in New York on Monday.

Tranz Rail said before the market closed that Melbourne-based West Coast Railway was the preferred purchaser in a non-binding agreement for the Tranz Scenic long-distance passenger services. The possible closure of up to five marginal passenger routes was also announced.

Only 7500 Tranz Rail shares traded. "I think that suggests it was well signalled," Mr Stokes said.

Pay television operator Sky TV was up 10c at $3.45 following the Government's announcement on Monday that Television New Zealand is to be changed from a state-owned enterprise to a Crown-owned company.

"I guess because of the change of focus, profit-wise and what have you, that probably plays into the hands of Sky TV," Mr Stokes said.

Casino operator Sky City continued its volatile price swings, shedding 35c to $10.75, Air New Zealand A shares were down 1c at $1.10 and the Bs were up 2c at $1.43. DB Group slipped 15c to $5.05, Lion Nathan gained 5c to $5.44, and Montana was unchanged at $4.80.

PDL Holdings was up 40c at $10.40, Richmond gained 7c to $2.41 and Sanford rose 5c to $6.45.

- NZPA