NZ stocks: Telecom stumble offsets Fletcher surge

Telecom's weakness offset another strong rally by Fletcher Energy, so despite a record high for the latter the top-40 index finished down.

The NZSE-40 capital index ended 8.21 points lower at 2101.78 and smaller stocks followed, the NZSE-SCI capital index dropping 11 points to 5425.53.

Overall turnover was again strong, worth $147.97 million. Telecom accounted for $76.57 million, Energy $18.94 million and Lion Nathan $10.20 million. Rises outnumbered falls 49 to 46 among the 151 stocks traded.

The Fletcher Challenge group released its official annual results yesterday, following a mix-up on Tuesday night when the Australian Stock Exchange released the data well before the scheduled 9 am NZ time. Among other factors, the ASX has a regulation requiring it to ignore embargoes.

"The Fletcher results were pretty much in line, so there weren't any great surprises there," Ord Minnett Securities head of institutional dealing John Rattray said.

Fletcher Energy, up 27c to 875, benefited from rumours it had locked in some value regarding its Californian Capstone Turbine 11 per cent stake. Energy is prohibited from selling until next year but may have come to some options related arrangement.

Some doubt exists about the value of Capstone since most of its stock is locked up for the moment and its meteoric rise - the Fletcher stake is worth well over a billion dollars - is based on the small portion which is currently free for trading.

Fletcher Forests lost 2c to 84 and Building eased a cent to 226.

It appears the blunder over release of the results had little consequence since overnight Wall St trading in them was not heavy.

Telecom lost 23c to 668 after a couple of strong days. Mr Rattray said it was trying to find a settled level after bouncing off a 3 1/2 -year low struck last week. Australia's Telstra eased a cent to 905 after releasing its annual results.

Elsewhere among the leaders, Air NZ's domestic A shares firmed 2c to 175 and the foreign Bs gained 5c to 230. Auckland Airport was up 2c at 296, Carter Holt rose 3c to 185, Contact gained 4c to 255, INL jumped 20c to 390, and Lion Nathan fell 15c to 470. Lion is to drop out of an international benchmarking index today.

Among the secondliners, The Warehouse was up 15c at 585, having soothed the market over the impact of a weak dollar on its imported goods.

Tower's head shares fell 13c to 505 and the partly paids dropped 19c to 225.

- NZPA