NZ stocks: Telecom overshadows turbulent Air NZ

Heavy selling in Air New Zealand shares swamped firmness in dominant stock Telecom, driving New Zealand's top-40 index down almost three-quarters of a per cent.

The NZSE-40 capital index ended down 13.72 points at 1913.32, its fourth consecutive fall.

Air NZ domestic A shares had 16c shaved off and closed at 148, and the foreign Bs plunged 35c to 196.

Market driver Telecom put on 8c to 560.

"It certainly bucked the trend," JB Were's James Reid said. "Telecom seems to be finding a level down here."

But, the market generally had a negative tone and performed poorly, given that Asian bourses were by and large stronger.

Fletcher Challenge directors received an earbashing at the annual meeting in Auckland, but the group's share prices were unaffected.

"It certainly hasn't had much impact on the prices," Mr Reid said.

Fletcher Building lost 4c to 177, as did Forests, which found a new all-time low at 32.

Energy rose 10c to 840.

Forests shareholders approved a rights issue, proving themselves willing to cough up $472 million to restructure the company.

Tranz Rail rallied 14c to 365 on the back of news that its main competition on the Cook Strait, the TopCat fast ferry, would finish operating this week.

Frucor, down 5c at 185, said at its annual meeting that it would achieve its forecast net profit of $20.4 million for the year to June 2001, up from $9.6 million.

Restaurant Brands firmed a cent to 120. AMP Henderson vacuumed up 15 per cent of its stock with a brief stand in the market at 125c a share.

Elsewhere, Carter Holt eased 2c to 165, Axa dropped 9c to 367, new listing Vending Technologies jumped 20c to 140, Baycorp lost 43c to $11.32, Contact lost 4c to 275, Sky City was down 10c at 717, Sky TV also gave up 10c, to 290, Telstra fell 20c to 820, The Warehouse gained 10c to 620, and Tower was down 10c at 500.

- NZPA