NZ stocks: Tissue the issue in Carter Holt data

The sharemarket will be watching this week's result from Carter Holt Harvey for the subtext as much as the numbers.

Everyone is looking for hints on the sale process for the tissue division - and the possibility of capital returns to shareholders.

The company's share price rose 8.6 per cent last week to hit its highest level since June 2002.

Analysts are forecasting operating earnings for the fourth quarter of $84 million to $98 million, which would be an increase on the same period in the previous year. The company last year flagged that the annual result would include a writedown of up to $900 million on the value of its forests.

On Thursday, analysts will be looking for:

* Guidance on the progress of efforts by Credit Suisse First Boston to sell the tissue business, which is on the books at $670 million;

* Indications of the company's appetite to return capital to shareholders;

* Indications of the longer-term outlook for forest harvest levels, which are being cut back this year.