NZ stocks: Telecom, Fletcher Energy spoil the party

Telecom fell yesterday, leaving the New Zealand sharemarket on the sidelines as others partied.

The NZSE-40 capital index closed down almost half a per cent, losing 9.67 points to 2083.75. In contrast, smaller stocks made ground, the NZSE-SCI capital index gaining 19.22 points to 5433.38.

Turnover value was high again, at $178.84 million. Telecom, back to 3 1/2- year lows again after losing 13c to 638, accounted for $90.02 million, and Fletcher Energy, down 24c at 871, accounted for $26.27 million.

JB Were senior investment adviser John Cobb said rebalancing continued in Telecom as fund managers who originally invested for yield sold to those seeking a growth stock. Telecom has cut its dividend so it can finance growth plans in Australia.

Mr Cobb said heavy volumes in Telecom this week could signify someone building a stake - Singapore Telecom is reportedly interested - but there was no specific evidence of that. Indeed, buying and selling came from a range of brokers, not just one or two.

Sky TV jumped 13c to 396, although that did not feed through to half-owner INL which lost 10c to 385. Mr Cobb noted that Television New Zealand could be doing a deal with digital pay-TV operator Sky to show its free-to-air channels.

Meanwhile, in the currency market the kiwi hit a fresh all-time low. Mr Cobb noted a lot of foreigners were getting impatient with New Zealand's investment performance and were pulling out.

Fisher and Paykel said it would pay a 12cps dividend for the six months to September 30. The appliance and healthcare products maker will announce its first-half result on November 8. Its stock finished down 3c at 742.

Air NZ foreign B shares rose 15c to 261, perhaps on the back of news that transtasman flights were set to increase by 7 per cent, offsetting rising oil prices. The shares rose 16c on Thursday. The domestic A shares were up 3c at 183.

Auckland Airport was down 3c at 293 after reporting a lift in annual profit to $51.1 million from $42.4 million.

The Warehouse, which reports its result on Monday, was down 4c to 590.

Guinness Peat, which reported its half-year profit on Thursday, rose 5c to 157.

Elsewhere, Carter Holt lost 5c to 179, Axa rose 12c to 365, Contactfell 3c to 255, Frucor was up 8c at 223, Lion Nathan gained 9c to 475 and Fletcher Building rose 3c to 225.

- NZPA