NZ stocks: US stock tremors shake market

The New Zealand sharemarket dipped 1 per cent yesterday after another volatile night on Wall St.

"We basically followed on from where the American market left off," Forsyth Barr Frater Williams broker Suzanne Kinnaird said.

The NZSE-40 index closed down 20.22 points, or 1.05 per cent, at 1901.67 on turnover of $61.3 million.

Falls outstripped rises by 50 to 40 among the 144 stocks traded.

Leading the market lower were bellwether stock Telecom, which shed 5c to $4.31 on turnover of $10.5 million; takeover target Contact, down 3c to $3.95; and forest products company Carter Holt Harvey, down 3c to $1.53.

Ms Kinnaird said Contact, which has dominated the market since its majority shareholder, US-based Edison Mission, launched a full takeover bid for the company on Friday, continued to trade above Edison's $3.85-a-share offer.

"They did spend most of the day trading around the $3.97/98 mark - still well above that $3.85 bid price," she said.

Carter was feeling the heat after yesterday announcing a net half-year loss of $19 million. Parent International Paper added to Carter's woes overnight, announcing a sharp drop in profit caused by increasing costs and low log prices.

Auckland Airport was down 7c to $3.20 after receiving a couple of brokerage downgrades, possibly based on its reliance on Air NZ and concerns about tourism growth.

Utilities investor Infratil - which has interests in airports here and overseas - was also under pressure following the impact of last month's terrorist attacks on the airline industry worldwide, closing down 10c at $1.58.

Other falls included The Warehouse, down 7c to $6.30; energy company Horizon, down 25c to $12.75; Independent News, down 15c to $3.25; and Tower, down 10c to $5.

Lion Nathan closed down 2c at $5.38 after news its complaint about the way its rival Allied Domecq bought a key stake in winemaker Montana had been struck out by a special Stock Exchange committee.

Lion had claimed Allied had a prior relationship with Montana chairman Peter Masfen before it bought his 19.9 per cent stake in the company, thereby breaching Stock Exchange rules about disclosure.

Ports of Auckland closed down 6c at $5.55 after Standard & Poor's put it on negative credit watch because of a planned capital return.

Beverage maker Frucor bucked the trend, closing up 3c at $1.83 after Forbes Global magazine named it one of the world's top 20 best small businesses.

In other positive movements, Powerco closed up 5c at $2, ahead of the release of its half-year result; Richmond was up 20c at $2.70; Baycorp was up 15c at 1180; and Vending Technologies was up 5c at $2.55.

Powerco announced after the market's close a net profit after tax of $17.6 million for the six months ending September 30, from revenue of $77.8 million.

- NZPA